Exercising the option


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Exercising the option

The act of buying or selling the underlying asset via the option contract.

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.
References in periodicals archive ?
On exercising the option, which can be on selected or all of the properties, MCK is required to specify an exploration/development program for each property to be carried out between 2004 and 2009.
After several meetings with IUT-Berlin management and obtaining their commitment to provide the necessary people and priority to developing our acquired technologies, we jointly decided that the funds should be spent on developing the technology instead of exercising the option.
When an option is exercised, e-Merchant checks that the criteria for exercising the option are met, as well as verifying that there is sufficient unexercised commodity remaining.