Advertising

Automatic exercise

• Occurs after an option expires. Each exchange and its clearing house has rules which govern this exercise. There are minimum in-the-money requirements. A holder of an option must inform the clearing house not to automatically exercise an option. These instructions not to exercise may be due to relatively high transaction costs, increases in position limits, or unacceptable alterations in position profiles. Also, after hours trading indications may suggest dramatically different prices than those used to determine the automatic exercise in-the-money amounts.

 
 Embedded terms in definition
 Clearing
Exchange
Exercise
Its
Option
Position
Prices
Trading
Transaction costs
 
 Related Terms
 Automatic stay
Early exercise
Exercise
Exercise or option price
Exercise price
Exercise value

<< Automated clearing house Automatic stay >>

Managing Your Expenses on a Fixed or Reduced Income: Once you've retired, you finally have the opportunity to work at your dream job - keeping yourself happy. It's your chance to visit places you've always wanted to see, take up a new hobby and spend more time with your family and friends. But to be successful at this new position, you've got to make the most of your income and investments. Here are suggestions. More...

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. - Sir Winston Leonard Spenser Churchill

Advertising



Copyright 2009-2018 GVC. All rights reserved.