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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 ?
I encourage the use of a heart-rate monitor that looks like a wristwatch, so people can watch their heart rate as they're exercising and not overdo it at the beginning," he adds.
Adapted from Exercising Through Your Pregnancy by James F.
After exercising, athletes can ingest one or two packets along with at least 10 oz.
So make sure that you drink a lot, whether you're thirsty or not, because if you're exercising, you can lose water and not be aware of it.
All the women scaled down their exercising after completing the study, and all returned to normal cycles within six months.
Physical limitations often prevent many people who want to improve their fitness from doing so, but these limitations do not need to stop them from exercising.
Exercising during these conditions increases the risk of dehydration, heatstroke, and even heart failure.
The problem with lengthy option exercise periods is that the longer they are, the more likely it is that employees will hold on to the options without exercising them, to build wealth without risk.
When she decided to start exercising again, the idea of panting, sweating and feeling the burn in her muscles didn't appeal to her.
When you're exercising aerobically, you're using glycogen for fuel.
CINCINNATI -- Studies show that exercising during pregnancy brings many benefits to baby and mom.
There are two possible ways of exercising the options under the agreement.