Early exercise
The exercise or assignment of an option prior to expiry. |
Similar financial terms
Early withdrawal penaltyA penalty on money withdrawn prematurely from a fixed-term investment, such as a tax-deferred pension plan before the age of 59 1/2 in the US.
Exercise price
Price at which the holder of an option can buy (call option) or sell (put option) the underlying stock. Also referred to as strike price.
Exercise limit
The maximum number of option contracts that can be exercised within a five-day period.
