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Exercising the option |
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Exercising the option The act of buying or selling the underlying asset via the option contract. Exercising the option In option contracts, the act of buying (in the case of a call) or selling (in the case of a put) the underlying asset. It is important to note that 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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422(a)(2) states that the employee must have been an employee beginning on the date that the option was granted and up to three months prior to exercising the option. We are pleased the Navy has shown its confidence in our ability to perform this requirement by exercising the option for message system support in Guam," commented Al Lane, President of RRC. Citigroup and some other companies allow an executive to turn in shares to satisfy the cost of exercising the option and paying the tax bill. |
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