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Early exercise |
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Early exerciseA feature of American-style options that allows the owner to exercise an option at any time prior to its expiration date.Similar MatchesAutomatic exerciseAutomatic exerciseA protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder. Exercise noticeExercise noticeA formal notice to the writer of an option from a clearing house that an option has been exercised by an option holder and that the writer is obliged to buy/sell the underlying instrument at the exercise price to meet his/her obligations. Exercise valueExercise valueThe amount of advantage over a current market transaction provided by an in-the-money option. Nominal exercise priceNominal exercise priceThe exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price. ExerciseExerciseWhen an option or warrant holder takes up his or her option to buy or sell the underlying instrument (for example shares, commodities, an index etc) he/she is said to exercise the option or warrant. Further SuggestionsAggregate exercise priceexercise price European style exercise Exercise settlement amount Adjusted exercise price Return if Exercised European Exercise |
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