"Exercise" definition Action taken by an option ho
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Posted On: 09/16/2013 6:09:40 PM
"Exercise " definition 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 .
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