Automatic Exercise

What Does Automatic Exercise Mean?
Automatic exercise refers to a procedure whereby the Option Clearing Corporation, in order to protect the holder of the option, exercises an “in-the-money” option.

For those who do not keep themselves updated with the third Friday each month, can consider it as insurance policy.


Tags: , ,

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Related posts:

  1. What is Lapse?
  2. The Rolling Investment Option: How to Use It
  3. What Does Adjusted Exercise Price Mean?
  4. Automated Clearing House (ACH)
  5. The Factors Affecting Share Prices

Comments

Leave a Reply




Close
E-mail It