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 ?
The crew abandoned ship onto a liferaft before the vessel sank at 11.
Craig Duffy spent 45 minutes in the water outside Stornoway harbour after he and his two crewmates abandoned ship.
Passengers on the Russian cruise liner which sparked a pounds 500,000 rescue drama have finally abandoned ship.
Ashleigh Aiston TOP TREND: Three abandoned ships off the coast of Tynemouth have shown no sign of leaving soon.
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.
Abdul Majeed Saifaie, Director of the Waste Management Department at Dubai Municipality, said the department had begun removing abandoned ships and waste in the area in phases from 2010.
Without the steelworks the houses, church and town looked like abandoned ships on a empty beach, whose purpose, had ceased to have meaning.