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Option exercise

Acting on the right an option carries: the holder claims the position or the asset at the strike.

How to read the number

After exercise the option is gone and a position stands in its place, in futures or in the asset itself depending on the contract.

When the metric lies

Exercising an option on futures brings no cash: it opens a position that requires collateral. A holder expecting profit to be credited finds a new obligation instead.

Also known as: exercising an option

Related terms