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Optionality vs Optional - What's the difference?

optionality | optional | Related terms |

Optional is a related term of optionality.



As a noun optionality

is the value of additional optional investment opportunities available only after having made an initial investment.

As an adjective optional is

not compulsory; left to personal choice; elective.

optionality

English

Noun

(optionalities)
  • (finance, business) The value of additional optional investment opportunities available only after having made an initial investment.
  • The short-term payoff for this is modest, but the optionality value is enormous.
  • Quality or state in which choice or discretion is allowed.
  • Some offices do not follow the corporate procedure, due to a culture of optionality .

    See also

    * call (finance) * put (finance)

    optional

    English

    Adjective

    (-)
  • Not compulsory; left to personal choice; elective.
  • On that beach clothing is entirely optional .

    Antonyms

    * obligatory * mandatory * compulsory