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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 ?
The fundraisers endured exhausting rides on static exercise bikes in the gym and marathon swims in the club's private swimming pool to help raise the funds.
On existing buildings approx 4200 mA demolition ribs ceilings, built new solid reinforced concrete slabs in stock, installation of a staircase and an elevator shaft in stock, various static exercise measures, construction of a new attached 2-storey all-day area with Mensa.
The surgeon was happy with the way the operation went and I have already started my rehabilitation, doing some static exercise.
People taking up the challenge can either cycle outdoors on their own machine or indoors on a static exercise bike.
Steel construction and masonry work to static exercise of the staircase.