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Unexercised Option |
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Unexercised Option An option in which the holder does not buy (in a call) or sell (in a put) the underlying asset by or on the expiration date. An option holder may let a contract expire unexercised because the price of the underlying has moved in an unfavorable direction or if exercising would harm his/her overall investment strategy. In an unexercised option, the contract becomes worthless and the holder loses the premium he/she paid to purchase it. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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