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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 MatchesExercise 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. European 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. 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. 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. 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. Further Suggestionsexercise noticeearly exercise Nominal exercise price European style exercise exercise Return if Exercised Aggregate exercise price |
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