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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 MatchesExerciseExerciseWhen 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. Adjusted exercise priceAdjusted exercise priceTerm used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield. Exercise valueExercise valueThe amount of advantage over a current market transaction provided by an in-the-money option. 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. Aggregate exercise priceAggregate exercise priceThe exercise price multiplied by the number of shares in a put or call contract. The option premium is excluded in the aggregate exercise price. In the case of options traded on debt instruments, the aggregate exercise price is the exercise price of the underlying security multiplied by its face value. Further SuggestionsExercise settlement amountEuropean style exercise Return if Exercised exercise price Automatic exercise Nominal exercise price European Exercise |
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