Words / R / Business

real option

noun/rɪəl ˈɒpʃən/

C1CEFR level
55/100Rarity: uncommon
TechnicalRegister

The right, but not the obligation, to make a future strategic investment such as expanding, delaying, or abandoning a project.

The minority stake gave the company a real option to acquire full control once the market matured.

Topic: Corporate strategy in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate strategy