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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive

Each option is exercisable at C$0.165 each for 36 months following closing.

Medallion Resources raises money to advance monazite processing operations

Additionally, the 1,980,909 warrants issued pursuant to closing of the second tranche of a private placement for gross proceeds of USD1.71m, exercisable to purchase 1,980,909 common shares at USD0.87 per common share and due to expire on 2 April 2019, will now expire on 2 April 2020.

Liht Cannabis Corp updates warrants extension

(CSE: IAN)(CSE: IAN.CN)(OTCQX: ITHUF) has announced it has granted 1,367,500 incentive stock options exercisable at CDN 6.00 per stock option, the company said.

iAnthus Capital grants 1.3m in stock options

The company also completed the private placement of Series A warrants to purchase 1,500,000 shares of common stock at an exercise price of $2.83 per share, which are not exercisable for six months from issuance and are exercisable for five years thereafter.

Cellectar Biosciences closes $3.3 million financing

The investors' Series A warrants are initially exercisable at USD7.73 per share and will be exercisable immediately as of the date of issuance until three years after the date of issuance.

China Information Technology offers ordinary shares, warrants

The stock options is priced at USD2.05 per share and it is exercisable on or before February 21, 2019.

Bear Creek Mining grants 1,292,500 incentive stock options

Under the terms of the Rights Plan, the rights will expire on 17 November 2012, and will be exercisable if a person or group, without board approval, acquires 20% or more of Barnes & Noble's common stock or announces a tender offer which results in the ownership of 20% or more of Barnes & Noble's common stock.

Board of Barnes & Noble adopts stockholder Rights Plan

One option is exercisable at 3.0 cents by 5 June 2010.

Republic Gold Limited (ASX:RAU) Quarterly Report For The Period Ending 30 September 2009

He also has 28.3 million share options exercisable at 123.3 pence a share until 2016, and 20.9 million exercisable at 124.7 pence a share from July.

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