Early Exercise


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Early Exercise (assignment)

The exercise or assignment of an option contract before its expiration date.

Early Exercise

A situation in which an option contract is exercised before its expiration date. American-style options allow early exercise, while European-style options do not.

early exercise

The exercise of an option before it expires. Although somewhat unusual, an option holder may decide on early exercise in order to receive an upcoming dividend (in the case of a stock option) or in order to satisfy another commitment.
References in periodicals archive ?
The lower bound corresponds to a suboptimal lapse strategy, according to which the policyholder compares the payoff from early exercise at any anniversary date with the expected payoff from continuation and decides to lapse only if the first is higher than the second.
Using transformation of time variable [tau] = T - t (namely, the time to maturity), then the option price and the early exercise boundary (namely, the free-boundary function) are denoted by P(V, [tau]) := f(V, T - [tau]) = f(V, t) and [V.sub.f]([tau]), respectively.
In particular, the early exercise of stock options is one obvious means by which holders can do so.
An early exercise was to provide pairs with cards to sort: children were first required to match the type of persuasive device with the sentence from the persuasive paragraph.
"We are very happy with this early exercise as it will enable Afri-Can to unlock the value of this project for its shareholders while we continue to focus on our marine diamond projects," Pierre Leveille, president and CEO of Afri-Can said.
An 83(b) election allows one to recognize income on the purchase of stock (either outright or through the early exercise of an option) prior to the actual vesting of the stock.
The research will examine the impact of early exercise therapy on patients within 24 hours of suffering a stroke.
Hope-related funding from the early exercise of warrants which have already provided approximately USD18.5m in proceeds and are anticipated to provide approximately USD4m in further proceeds by mid-February.'
At 6 months, those randomised to early exercise lost more weight than those who received delayed physical activity (10.9 kg v.
(1999) suggest that during early exercise C[O.sub.2] storage in the muscle decreases RER values.
This lack of liquidity, marketability, and transferability often triggers suboptimal behavior, including voluntary early exercise, involuntary early exercise, and forfeiture of options by employees departing the company--all of which translate into an effective term that is shorter than the contractual term.

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