Early Exercise
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Early Exercise (assignment)
The exercise or assignment of an option contract before its expiration date.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
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.