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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 ?
Founded by Brain Gym International in Ventura, the technique aims to improve the mind through 26 exercises.
Students who participated in the PBL exercises suggested that it made the material "more relevant and meaningful" and "problem based learning were effective and interesting ways to learn course material".
Income realized from the exercise of ISOs is not included in regular taxable income when exercised by the employee.
This is important because is helps avoid an additional income statement hit to earnings for future option exercises or cancellations.
2 at Busan, Korea, to participate in the annual Ulchi Focus Lens Exercise (UFL).
From the top of your head to the bottom of your toes, being physically active is the stimulus that gets most organs in the body to work at their best," says Tufts University exercise expert Miriam Nelson.
Using these findings, we organized a 1-day table-top exercise in San Diego, California, in late 2004 that revolved around an emerging infectious disease caused by an easily transmitted novel respiratory virus.
The squat, leg press, leg extension and bent-over row are all examples of large-muscle group exercises, and have been shown to consume more oxygen than exercises like the shoulder press, bench press, upright row, and arm curl.
Further, these exercises help members evaluate candidates for positions on the team.
Book II contains exercises in which the thumbs play on notes other than middle C.
For our athlete, as the breathing techniques and pelvic repositioning exercises improved, so did the results of the postural tests.