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Exercise notice |
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Exercise 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.Similar MatchesEuropean style exerciseEuropean style exerciseA method of exercising options contracts in which the buyer can exercise the contract on the last day before expiration. 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. 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. 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 SuggestionsReturn if ExercisedEuropean Exercise early exercise Exercise settlement amount Aggregate exercise price Automatic exercise exercise price |
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