abandon

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Abandon

1. To decide not to exercise an option. This occurs when an option is out-of-the-money on the exercise date. That is, one may abandon an option if it is currently unprofitable and thus highly unlikely to become profitable.

2. To withdraw one's claim to an asset, especially an unprofitable one. Corporations must file appropriate paperwork with the government to abandon assets. Alternatively, an individual may abandon both real and personal property. For example, a homeowner may leave his/her house and never intend to return. A squatter may then come to possess the home through adverse possession. An important component of abandonment is the owner's intent never to return or otherwise possess the property again.

3. To opt out of a forward contract according to the procedure specified therein. When one abandons a forward contract, one does not buy or sell the underlying asset and it is not delivered.

abandon

To elect not to exercise an option.
References in periodicals archive ?
Briton Phil Metcalf, whose daughter Rose was a dancer on the liner and who was one of the last people off the vessel, said she told him Schettino abandoned ship in the early stages of the evacuation.
He says the ship may have sunk or was sinking since the crew had already abandoned ship.
The team from the Green Bushes all dressed as babies are pictured as they abandoned ship while their vessel sank to a watery grave.
55pm Coastguard station Argentina reported that the crew had abandoned ship.
A crew of 15 Russians abandoned ship and arrived safely by lifeboat in Nemuro, eastern Hokkaido, Monday night after their vessel met an accident, the Japan Coast Guard (JCG) said Tuesday.
After failing to bring the blaze under control, the remaining crew members abandoned ship just after midnight.
Footage of the incident, in which one crew member suffered head injuries and another abandoned ship, has been posted on YouTube.
More clean-up work needs to be done in the same sea area, he said, indicating that abandoned ships should be removed from these locations.
Dubai The Dubai Municipality has completed the removal of abandoned ships in the Al Jadaf area of Dubai Creek.