BeginningTrader.com
Exercise
To execute the right of the holder of an option to buy (for call options) or sell (for put options) the underlying security at the striking price.
American Style vs European Style
American style options can be exercised anytime before the expiration date. European style options on the other hand can only be exercised on the expiration date itself. Currently, all of the stock options traded in the marketplaces are American-Style options.
When an option is exercised by the option holder (the option buyer), the option writer (option seller) will be assigned the obligation to deliver the terms of the options contract.
Next: Assignment
copyright 2024 Obscure Fate Multimedia. All Rights Reserved
This site and all information contained within is for informational purposes only. Nothing written here should be construed as specific investing advice.
This site and all information contained within is for informational purposes only. Nothing written here should be construed as specific investing advice.