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Exercise value |
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Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money option.Exercise value 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 priceExercise 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. Exercise settlement amountExercise settlement amountThe difference between the exercise price fo the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier. 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. 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 SuggestionsEuropean style exerciseAdjusted exercise price early exercise European Exercise Nominal exercise price Return if Exercised exercise notice |
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