Exercise

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Exercise

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.

Exercise

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.

exercise

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.

Exercise.

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 classic literature ?
After the ceremony Colin always took his walking exercise and throughout the day he exercised his newly found power at intervals.
As it is your principle to allow us to exercise our own judgment, we intend to cultivate the acquaintance of Smilash.
Thus the young ladies are as much ashamed of being cowards and fools as the men, and despise all personal ornaments, beyond decency and cleanliness: neither did I perceive any difference in their education made by their difference of sex, only that the exercises of the females were not altogether so robust; and that some rules were given them relating to domestic life, and a smaller compass of learning was enjoined them: for their maxim is, that among peoples of quality, a wife should be always a reasonable and agreeable companion, because she cannot always be young.
There were four Musketeers on the bottom steps, amusing themselves with the following exercise, while ten or twelve of their comrades waited upon the landing place to take their turn in the sport.
And so Individualism exercises no compulsion over man.
M'Dougal was fain to land, and establish his quarters at the encampment, where he could exercise his rights and enjoy his dignities without control.
It is important and right that all privileges of the law be ours, but it is vastly more important that we be prepared for the exercises of these privileges.
But when public feeling enters into the question, and directly exalts the bodily exercises above the books--then I say public feeling is in a dangerous extreme.
In the first place, her votary should not have a lame or halting industry-- I mean, that he should not be half industrious and half idle: as, for example, when a man is a lover of gymnastic and hunting, and all other bodily exercises, but a hater rather than a lover of the labour of learning or listening or enquiring.
Some there are, however, of this rank upon whom passion exercises its tyranny, and hurries them far beyond the bounds which decorum prescribes; of these the ladies are as much distinguished by their noble intrepidity, and a certain superior contempt of reputation, from the frail ones of meaner degree, as a virtuous woman of quality is by the elegance and delicacy of her sentiments from the honest wife of a yeoman and shopkeeper.
Finding us distinguished, as a nation, by our love of athletic exercises, the little man, in the innocence of his heart, devoted himself impromptu to all our English sports and pastimes whenever he had the opportunity of joining them; firmly persuaded that he could adopt our national amusements of the field by an effort of will precisely as he had adopted our national gaiters and our national white hat.
But then it was impossible not to like Philip's company when he was in a good humor; he could help one so well in one's Latin exercises, which Tom regarded as a kind of puzzle that could only be found out by a lucky chance; and he could tell such wonderful fighting stories about Hal of the Wynd, for example, and other heroes who were especial favorites with Tom, because they laid about them with heavy strokes.