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Exercise |
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ExerciseWhen 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.Similar MatchesExercise noticeExercise 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. European 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. 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. 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 Suggestionsexercise priceAdjusted exercise price early exercise European Exercise Exercise settlement amount Return if Exercised Nominal exercise price |
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