Super Finance Glossary

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Over 10,000 financial glossary terms...

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Searched for Exercise

8 - Displaying next results out of 8
Exercise
Definition: 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 Limit
Definition: Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract. There are no restrictions on exercise for the last 10 trading days before expiry. A stock option's exercise limit varies with the volume of the underlying stock.
Exercise Notice
Definition: A broker's notification from a client who wants to exercise a right to buy or sell (depending on the type of contract) the underlying security of the option contract.
Exercise Price
Definition: The price at which the security underlying an options contract may be bought or sold.
Exercise Price (Strike Price)
Definition: The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.
Exercise Price Or Strike Price
Definition: The price at which the buyer and seller agree the underlying will be exchanged for, if the option is exercised. The deal is said to be struck at the selected level.
Exercise Settlement Amount
Definition: The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
Exercise Value
Definition: The value of an in-the-money option if it was exercised today (before the expiration date). For a call option, this is the difference between the current asset price and the stike price. For a put option, it is the difference between the strike price and the current asset price.