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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 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. Return if ExercisedReturn if ExercisedThe return that a covered call writer would make if the underlying stock were called away. Early exerciseEarly exerciseA feature of American-style options that allows the owner to exercise an option at any time prior to its expiration date. 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. 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. Further SuggestionsExercise valueAutomatic exercise exercise notice Nominal exercise price Adjusted exercise price European style exercise Aggregate exercise price |
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