1. the quality or state of being optional; the availability of choices or alternatives
Usage: formal; often used in business and finance contexts
2. a feature in financial instruments that gives the holder the right but not the obligation to take a specific action
Usage: finance; technical

Examples

• The contract includes optionality for early termination.
• Investors value the optionality built into convertible bonds.
• The software design emphasizes optionality in user settings.
• The optionality of the warranty extension appealed to customers.
• Financial derivatives derive their value from embedded optionality.
• The project timeline maintains optionality for scope changes.