Exercise


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Exercise

To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.

Exercise

In option contracts, to buy (in the case of a call) or sell (in the case of a put) the underlying asset. The option holder has no obligation to exercise the option, and only does so if he/she believes it benefits him/her. Depending upon the nature of the option, this may be done at any point during the life of the contract, or it may only be done on the contract's expiry date. The strike price of the sale is agreed-upon in the option contract, that is, before the option is exercised.

exercise

To require the delivery (for example, a call option) or to force the purchase (for example, a put option) of the option's underlying asset. Many options expire without being exercised because the strike price stated in the option is unfavorable to the holder.

Exercise.

When you act on a buying or selling opportunity that you have been granted under the terms of a contract, you are said to exercise a right.

Contracts may include the right to exchange stock options for stock, buy stock at a specific price, or buy or sell the security or product underlying an option at a specific exercise price.

For example, if you buy a call option giving you the right to buy stock at $50 a share, and the market price jumps to $60 a share, you'd likely exercise your option to buy at the lower price.

References in classic literature ?
From that time the exercises were part of the day's duties as much as the Magic was.
The tyranny that it proposes to exercise over people's private lives seems to me to be quite extraordinary.
The thing that stops them, it must be said again, is their desire to exercise authority over the artist and over works of art.
After other interesting exercises, including an invocation from Bishop Nelson, of Georgia, a dedicatory ode by Albert Howell, Jr.
It is important and right that all privileges of the law be ours, but it is vastly more important that we be prepared for the exercises of these privileges.
The princess bent over the exercise book on the table.
cried the prince abruptly, pushing the letter away, and leaning his elbows on the table he drew toward him the exercise book containing geometrical figures.
And I say that again--provided the physical exercise be restrained within fit limits.
Bodily exercise, when compulsory, does no harm to the body; but knowledge which is acquired under compulsion obtains no hold on the mind.
Some there are, however, of this rank upon whom passion exercises its tyranny, and hurries them far beyond the bounds which decorum prescribes; of these the ladies are as much distinguished by their noble intrepidity, and a certain superior contempt of reputation, from the frail ones of meaner degree, as a virtuous woman of quality is by the elegance and delicacy of her sentiments from the honest wife of a yeoman and shopkeeper.
Finding us distinguished, as a nation, by our love of athletic exercises, the little man, in the innocence of his heart, devoted himself impromptu to all our English sports and pastimes whenever he had the opportunity of joining them; firmly persuaded that he could adopt our national amusements of the field by an effort of will precisely as he had adopted our national gaiters and our national white hat.
But then it was impossible not to like Philip's company when he was in a good humor; he could help one so well in one's Latin exercises, which Tom regarded as a kind of puzzle that could only be found out by a lucky chance; and he could tell such wonderful fighting stories about Hal of the Wynd, for example, and other heroes who were especial favorites with Tom, because they laid about them with heavy strokes.