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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.


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.


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.


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 periodicals archive ?
Subcategory Description Passive Exercise Any joint movement that is done by therapist or outside source without active participation of patient.
Passive Exercise Maintain joint Movement of muscle flexibility, or muscle group circulation with external assistance.
Passive exercise can be used for inducing functional ranges of joint motion and sensory feedback to maintain or improve neuromuscular function after complete or incomplete SCIs, respectively.
A gallery of patient photos and treatment utilizing a specialized scoliosis traction chair demonstrates the passive exercise therapy performed by the patient at the clinic or at home.
YogaToes(R) beautify feet with passive exercise that helps to straighten bent toes and alleviate foot pain caused by tight shoes, high heels and overexertion.
OTCBB:NIMU) announced today that a published study using its AT-101 passive exercise device showed, for the first time, that the AT-101 produces an important benefit that also occurs with active exercise.
The AT-101 is listed with the FDA as a Class I (exempt) passive exercise device intended as an aid to improve the circulation and joint mobility.
Sackner, CEO NIMS stated, "Improvement in operations was due to increased royalty income, continued sales of the AT-101 passive exercise device, reduction of staff as well as reduction of administrative, costs of sales, research and development expenses.

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