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Abandonment
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It can be the act of surrendering a claim to, or Interest in, a particular asset or the permitted withdrawal from a Forward contract that is made for the purchase of deliverable securities ort he act of allowing an Option to expire unexercised.
Corporations Will generally give up assets or projects that are no longer profitable. In most instances, proper legal documents must be filed with authorities and any damages must be recouped. Abandonment occurs in Forward contracts that permit the purchasers to withdraw from the contract, rather than purchase the deliverable securities.
In many instances, an Option may not be worthwhile or profitable to Exercise and, therefore, the purchaser of the Option Will let the Option expire without being exercised.
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EUROFORUM Schweiz AG
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