Early Exercise


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Early Exercise (assignment)

The exercise or assignment of an option contract before its expiration date.

Early Exercise

A situation in which an option contract is exercised before its expiration date. American-style options allow early exercise, while European-style options do not.

early exercise

The exercise of an option before it expires. Although somewhat unusual, an option holder may decide on early exercise in order to receive an upcoming dividend (in the case of a stock option) or in order to satisfy another commitment.
References in periodicals archive ?
In Figure 1, we plot the early exercise boundaries computed by LTM and FDM for the cases of [alpha] = 0.
The frequent occurrence of early exercise of stock options is well documented in the literature.
37) If you purchased a stock through the early exercise of an option (i.
For companies with substantial historical data, the first step in implementing the HL approach consists of calculating a normalized expected term factor (NETF) for each historical option grant by adjusting the contractual option term for vesting restrictions and early exercise (see the Sidebar for a glossary of the terms used here and below).
The scale of this investment underscores their commitment towards Eastown and Westown and the early exercise of these options confirms the commitment of both parties to delivering these projects in an extremely quick timeframe.
He eventually converted to vegetarianism and became an early exercise junky, vigorously riding on a rocking horse when it was too wet to walk outside.
Lactate or, as it was customarily known, 'lactic acid' was one of the first molecules to attract the attention of early exercise scientists, mainly because blood lactate concentration could be measured and was shown to increase with increasing exercise intensity.
Kate, who lives in Gosforth with James, her 22-month-old son, is eager to explain the advantages of any early exercise plan to parents.
It is incomplete because it provides no explanation of early exercise of options or warrants.
Veld, 1996, "Put-Call Parities and the Value of Early Exercise for Put Options on a Performance Index", Journal of Futures Markets, 16:71-80
Carper and Attridge want the reader, as an early exercise (22), to copy out half of Frost's "Stopping by Woods on a Snowy Evening" accurately and with pleasure and to try to mark the rhythm as she then reads it aloud.

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