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Exercise price |
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Exercise priceThe price at which an option or warrant holder can buy or sell the underlying instrument (for example, shares, an index, commodities etc). Also known as the strike price.The price at which a new issue of shares is sold to investors where the issue has taken place as a tender offer. The exercise price is calculated as the maximum price at which all the shares being issued can be sold, bearing in mind the bids put in by investors.Similar MatchesEuropean ExerciseEuropean ExerciseA feature of an option that stipulates that the option may only be exercised at its expiration. Therefore, there can be no early assignment with this type of option. European style exerciseEuropean style exerciseA method of exercising options contracts in which the buyer can exercise the contract on the last day before expiration. Automatic 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. Nominal exercise priceNominal exercise priceThe exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price. Return if ExercisedReturn if ExercisedThe return that a covered call writer would make if the underlying stock were called away. Further SuggestionsAggregate exercise priceexercise notice early exercise Adjusted exercise price exercise Exercise value Exercise settlement amount |
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