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 ?
Private Information as a Motivating Factor in Early Exercise
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.
The lattice model has a key advantage over its Black-Scholes-Merton counterpart; it offers CPAs several ways to incorporate assumptions about the projected early exercise of options.
Smith, professor of equine orthopaedics at the Royal Veterinary College, concluded: 'Investigations suggest that tendon is able to respond to exercise during growth, and that early exercise is potentially the most important determinant of tendon development.
Northrop Grumman's Electronic Sensors and Systems Sector (ES3) and the US Federal Aviation Administration (FAA) have agreed terms for the early exercise of a contract option to begin production of a new weather radar detection capability in Northrop Grumman's ASR-9 airport surveillance radar.
AN EARLY exercise bike fascinates Rachel Whitmore and Dwight Fenton in the museum at George Eliot Hospital, Nuneaton.
Early exercise can also be in the shareholder's interest, because it increases CEO share ownership and creates even greater urgency to continue growing the stock price.
In particular, we concentrate on interest rate guarantees with the possibility of premature or early exercise.
A study on broad-based employee stock-option programs released in August by Steven Huddart of Duke University and Mark Lang of the University of North Carolina found early exercise of stock options to be "a pervasive phenomenon.
Because it appears that the more often a woman ovulates -- each time boosting the circulation of certain reproductive hormones -- the greater her breast cancer risk, the California group reasoned that early exercise might prove most protective and show up best in young women.
NasdaqGS: STRL), ("Sterling" or the "Company") today announced that on December 31, 2012 it made an early exercise of its option under a December 2009 Purchase Agreement ("the 2009 Agreement") and purchased the remaining 20% membership interest in Ralph L.
This consisted of a placement to sophisticated investors and a commitment by non-executive director Neil Lithgow to an early exercise of 5 million options at $0.

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