The process of converting an options contract into a futures position.
To execute the terms of a contract. See option.
Exercising a call means that you elect to purchase the underlying futures contract at the option strike price. Exercising a put means that you elect to sell the underlying futures contract at the option strike price.
The process by which an option holder has the right to buy or sell.
As a verb, to use the right to purchase shares at ... Add a comment
The right of the buyer (holder) to buy the underlying security in the case of a call, or sell the security in the case of a put.
To act on an option by purchasing the underlying security.
The act of converting an Option into its underlying.
The process by which an employee purchases stock he or she has the option to purchase. Being offered an option does not require the employee to purchase the stock or exercise the option.
To use the rights given by the warrants, e.g. to buy or sell the underlying security for call and put warrants, respectively. The exercise procedure is detailed in the Pricing Supplement.
To carry out an option to buy or sell securities under the terms of an options contract. The holder (buyer) of a call exercises the option by buying the securities represented by the call; the holder of a put exercises the option by selling the securities represented by the put.
The process of using the right to buy or sell the underlying at the specified price.
The act of acquiring the underlying securities subject to a stock option by paying the "Exercise Price."
The implementation or use of a contractual right, for example, a call option holder's purchase of the underlying security.
The process of taking up the right to transact of a purchased option.
To take up an option to buy something usually a share.
Declaration by the buyer of an option stating that he wishes to buy or sell the underlying security under the conditions specified in the options contract.
the act of converting on option into its underlying commodity or security.
Exercising is the process of converting the rights of warrants. For example, converting a call warrant allows the holder to buy a share at the exercise price.
To execute the rights granted in an options or warrant contract. For example, an owner of a call contract on common stock exercises a call by executing the right to buy 100 shares of the stock at the strike price stated in the contract.
To implement the right under which the holder of an option, warrant, or right is entitled to buy or sell the underlying security.
a decision, reserved for the option holder, to request execution of the contract.
The use of the right by the option holder to purchase the underlying shares at the exercise price if the option is a call, or to sell the underlying shares at the exercise price if the option is a put. When a call is exercised, the writer is obliged to make delivery of i.e. sell the underlying shares at the exercise price of the option and the buyer is obliged to take delivery i.e. buy. When a put is exercised, the writer is obliged to take delivery of i.e. purchase the underlying shares at the exercise price of the option and the buyer is obliged to make delivery i.e. sell. Exercise Notice - A formal notification to the Clearing House that the holder of a call (put) option wishes to buy (sell) the underlying at the exercise price.
The act of an option holder who chooses to take delivery (calls) or make delivery (puts) of the underlying interest against payment of the exercise price.
The process of invoking the rights of the option or warrant contract. It is the holder of the option who exercises his or her rights.
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To implement the right of the holder of a stock to buy or sell it. Also, to implement the right of the holder of an option to buy or sell the underlying security.
The process by which an option holder/owner invokes the terms of the option contract. To exercise, call owners will buy the underlying stock, while put owners will sell the underlying stock under the terms set by the option contract. Option sellers must be aware of this exercise risk when the option they sold goes deep into the money, and they must make sure they have the capital available to cover any such potential exercise.
The right granted under the terms of a listed options contract. Call holders exercise their right to buy the underlying security. Put holders exercise their right to sell the underlying security. There is generally an exercise limit placed by the options exchange. This is to prevent a group of investors or an individual investor from cornering the market on an underlying security.
Is the action taken by the holder of an option or convertible security to convert his derivative position into the underlying security, commodity or futures. In the case of the option the exercise of a call would give the owner of the call the underlying instrument or cash settlement adjustment. In the case of a convertible bond, the owner of the bond terminates that contractual relationship in exchange for shares in the corporation. The owner of the option is the only one that exercises. However, there are mandatory exercises for expiring options that are in-the-money by more than the stipulated threshold amount. Also, there may be built-in event options that take priority over the owner of the securities right to exercise. Nevertheless, this nesting of options still defers to rules that establish which party holds, which options.
at Strike Price - The price at which the holder (buyer) may purchase or sell the underlying futures contract upon the exercise of an option (See Strike Price)
the process by which the holder of an option elects to take delivery of (call) or deliver (put) a currency according to the contract terms
The process by which the holder of option notifies the seller of his/her intention to take/make delivery of the underlying contract.
In relation to an ESOP, to exercise an option means to take action to make use of your legal rights or privileges (provided under the option contract) to acquire a share in your employer including by paying the relevant exercise price under the option. Example: In May, Matt was given an option to buy a share for a fixed price of $2 in his employer company any time within the next 2 years. In November, the price of the companyâ€(tm)s share (market value) rose to $4. Matt decided to exercise his option then, paid the exercise price of $2 and bought a share in his employer company. If he sold that share immediately for its market value of $4 he would therefore make a profit of $2. If the shares had fallen below $2, it is likely that Matt would simply retain (not exercise) his option. Matt is not required to pay any money until he ‘exercisesâ€(tm) the option.
To put into action the bought right of an options holder, either to sell, as in a Put Option, or buy, as in a Call Option. This is accomplished when the customer holding the Position instructs his broker to exercise it.
In options trading, the holder of a long contract has the right to buy (call option) or sell (put option) the underlying shares at the exercise price by notifying the option seller (writer). In making notification to the seller, the holder is exercising the option contract. See: Exercise Limit; Exercise Notice; Exercise Price; Options
Exercising an option means the buyer elects to accept the underlying market at the optionâ€(tm)s strike price.
The process by which an option owner elects to do what the contract allows
When a call purchaser takes delivery of the underlying long futures position, or when a put purchaser takes delivery of the underlying short futures position. Only option buyers may "exercise" their options; option sellers have a passive position.
The transaction in which you use your stock option to buy shares of stock, i.e., you exercise your right to buy stock at the option or strike price.
Implementing an option's right to buy or sell the underlying security.
The conversion of the option by the holder into the appropriate long or short underlying futures contract.
The process by which the buyer of an option converts the option into a long position (in the case of a call) or a short position (in the case of a put).
To execute the rights of an option, by buying the appropriate amount of stock at a predetermined price.
With stock options: using them to buy stock.
The use of the right by the option holder to purchase the underlying shares at the exercise price if the option is a call, or to sell the underlying shares at the exercise price if the option is a put. Equity options traded on LIFFE are 'American-style' options; they can be exercised by the option holder at any time prior to expiry. When a call is exercised, the writer is obliged to make delivery of i.e. sell the underlying shares at the exercise price of the option and the buyer is obliged to take delivery i.e. buy. When a put is exercised, the writer is obliged to take delivery of i.e. purchase the underlying shares at the exercise price of the option and the buyer is obliged to make delivery i.e. sell.
The process by which the option buyer converts the option into a futures position.
Implementing holder's right to buy/sell the underlying security.
The conversion of the option into the underlying commodity options
To invoke the right granted under the terms of a listed options contract. The holder is the one who exercises. Call holders exercise to buy the underlying security, while put holders exercise to sell the underlying security.
The process by which an option holder executes his right to buy or sell.
converting an option into a future
Action taken by an option holder that requires the writer to perform the terms of the contract.
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.
The election by the owner of an option to do what the option allows: either buy or sell the underlying at the strike price.
To take advantage of the right conferred on an option's buyer to buy or sell the item underlying the option at the option's strike (exercise) price.
When an option is converted to its underlying asset.
When the holder of a long option position purchases (if calls are owned) or sells (if puts are owned) the underlying security at the exercise (strike) price. The exercise is accomplished when the customer holding the long position gives his broker instructions to exercise his position. This must be done in accordance with the rules pertaining to timing established by the exchanges and individual brokerage firms.
To elect to buy or sell, taking advantage of the right (but not the obligation) conferred to the owner of an option contract.
The action taken by the holder of a call option if he or she wishes to purchase the underlying security, or by the holder of a put option if he or she wishes to sell the underlying security. Also refers to the action taken by a rights or warrant holder.
The procedure whereby the holder of an option notifies appropriate exchange (through the holder's broker) that he wishes to purchase the underlying instrument (in the case of a call) or deliver the underlying instrument (in the case of a put) at the exercise price.
The action taken by the holder of a call option if he wishes to purchase the underlying futures contract or by the holder of a put option if he wishes to sell the underlying futures contract.
exhaust price external funds
The use of the right to purchase the underlying instrument by the holder of a call, or to sell the underlying instrument by the holder of a put. Upon exercise of an option on a futures contract, an option seller will be assigned (at the exercise price) a futures position opposite to the position acquired by the option buyer. Upon exercise of an option on equity shares, an option seller will be required to deliver shares at the exercise price (in the case of a call option) or purchase shares at the exercise price (in the case of a put option). Exercise of an option on an equity-index contract, either a call or a put, results in a cash settlement based on the difference between the exercise price and the index at the time of exercise.
The owner of an option contract may exercise it, indicating that the financial transaction specified by the contract is to be enacted immediately between the two parties, and the contract itself is terminated. When exercising a call, the owner of the option purchases the underlier at the strike price from the option seller, while for a put, the owner of the option sells the underlier to the option seller.
