exercise
Action taken by an Option Holder for the purpose of taking advantage of a contractual Right to buy or sell the Underlying security, commodity, or financial instrument. Specifically, an investor holding a call option will buy the underlying asset, and an investor holding a put option will sell it. Options not exercised by the expiration day expire worthless and result in a loss for the option holder.
Browse by Subjects
put writer
exercise price
covered put
expiration month
contract month
See All Related Terms »

floating capital
interim payment
bankers bill
Buffett, Warren
discretion