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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 ?
If the exercise price of each ISO granted under an employer's plan is equal to the fair market value of the underlying shares of stock at the time of grant (a common situation, although ISOs with exercise prices in excess of current fair market value are obviously permissible), then compliance can be tested by comparing $100,000 to the product of (i) the number of shares with respect to which ISOs of an employee first become exercisable in a particular year and (i) the exercise price per share.
Also, incentive warrants to purchase 5 million shares of Common Stock will be granted to Norman Haber and are exercisable only if the closing price of Common Stock price equals or exceeds $0.
As described in the Prospectus relating to the Units dated May 12, 1993, the Warrants cannot become exercisable unless at the time of exercise the company has a current Prospectus to provide to the Warrant holders.
The 7% Senior Secured Convertible Debentures, which mature on April 3, 2008, are convertible to common shares at the lower of 75% of the volume weighted average trading price for the 20 days prior to issuance of a notice of conversion by a holder of a Debenture, or, if while these Debentures remain outstanding, we enter into one or more financing transactions involving the issuance of common stock or securities convertible or exercisable for common stock, the lowest transaction price for those new transactions.
and exercisable before 26 November 2015 have been cancelled in
Each Agents' Option issued in connection with the non flow-through units is exercisable for one year form closing and entitles the holder to purchase one unit of the Issuer at a price of $0.
ordinary shares 409,091 Unlisted options exercisable at $0.