Exercise price


 

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Exercise price

The 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 Matches

European Exercise

European Exercise

A 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 exercise

European style exercise

A method of exercising options contracts in which the buyer can exercise the contract on the last day before expiration.


Automatic exercise

Automatic exercise

A 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 price

Nominal exercise price

The exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price.


Return if Exercised

Return if Exercised

The return that a covered call writer would make if the underlying stock were called away.


Further Suggestions

Aggregate exercise price
exercise notice
early exercise
Adjusted exercise price
exercise
Exercise value
Exercise settlement amount


 
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