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Related to Exercise the Option: call option, European call option


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 ?
Northern Dynasty has completed more than 60,000 feet of drilling on the Exploration Lands as required under the agreement to exercise the option.
In order to exercise the option granted under the Agreement, the Sudbury Joint Venture, among other things, was required to incur exploration expenditures totaling C$30 million on the properties over a 52-month period, commencing January 10, 2002.
After 5,000 ounces of refined gold have been recovered from the Bulk Sample, Mosquito, in addition to the Bulk Sample Royalty, as defined below, will be entitled to receive $100 for each additional ounce of refined gold recovered from the Bulk Sample, and all of such payments received by Mosquito will be deducted from the cash payments required to exercise the Option as outlined below.
Gideon Mantel, Commtouch's CEO, commented: "We are extremely pleased by the progress we have made so far and by the support and trust placed in us by this group of lenders, as further exhibited by their willingness to exercise the option to proceed with the second tranche funding.
The Company further stated that the decision not to exercise the option does not at all affect Isonics' ownership of the above technology.
In accordance with the Option Purchase Agreement, DVI assigned its right to exercise the Option to Dolphin Medical Inc.
Under the call option agreement, subject to restrictions on exercise in the first year, through September 28, 2005, General Mills may exercise the option in whole or in part at any time in respect of up to 5,000,000 shares provided that (1) such exercises are in respect of issuances under its convertible debentures and (2) such exercises would not cause Diageo to hold less than 20% of the outstanding ordinary shares of General Mills.
EVI may exercise the Option by paying PEI a non-refundable deposit of Cdn $200,000 (the "Deposit") no later than the Option Expiration Date.