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What does optionality mean?

Looking for the meaning or definition of the word optionality? Here's what it means.

Noun
  1. (finance, business) The value of additional optional investment opportunities available only after having made an initial investment.
  2. Quality or state in which choice or discretion is allowed.
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Examples
Equity and credit market volatility is increasing awareness of the risks that underlie the optionality provided in in surance products.
As technology evolves, a diverse portfolio of relationships, insights and experiments provides greater optionality.
The member brought up the issue of optionality and mentioned that the NDP member had said that it was not optional.
In our case, we're paying what we think is a very attractive price — so our point of entry in this transaction is such that we have a lot of optionality.
The alleged optionality of these three institutions is completely misleading.
In our opinion, optionality for accommodation in the National Capital Region would be impractical and very likely lead to suboptimizing government resources for accommodation.

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