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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 ?
Finally, student perceptions about using PBL to teach exercise physiology, collected on anonymous course evaluations were assessed.
2005-48, and concluded that income is recognized for AMT purposes on the exercise date (assuming it is at least six months after the grant date).
Instead, we learned that when they no longer had exercise as part of their weekly routine, they not only drifted away from physical activity but more importantly, to them, they noticed that they just didn't feel as good as they did when they had a regular physical activity routine.
When a disqualifying disposition of an ISO occurs when an employee disposes of the stock within two years of the option grant date or within one year of the option exercise date--the company gets a tax deduction equal to the difference between the option's fair value and the exercise price on the date the disqualifying disposition took place.
This year's exercise also included 599th battalion members from Pusan, Korea, and Okinawa and Yokohama, Japan.
However, exercise had no link with either Alzheimer's or other dementias in people in the study who had the [epsilon]4 version of the apolipoprotein (ApoE) gene.
Civilian law enforcement officials characterized the public health crisis in the exercise scenario as "unprecedented.
However, a small decrease in intensity earlier in the exercise bout--in marathoning, this means slowing down for the race's early miles, while everyone around you is excitedly pushing the pace--often spares glycogen sufficiently to avoid total depletion.
The tactical, technical, and emergency services units, as well as the Special Investigations Bureau (SIB), work closely with the HNT providing logistical and electronic support for training exercises.
Book I consists mostly of five-finger exercises on the middle-C position, hands alone.