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Automatic exercise

The automatic exercise of options that finish in the money on the expiry date.

How to read the number

No instruction is needed: the exchange itself exercises whatever carries intrinsic value, under the rules of the specification.

When the metric lies

It fires even when the holder would rather it did not: the next morning a futures position with its collateral is sitting in the account, to be closed at whatever prices the new session brings.

Also known as: auto-exercise

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