In legal contexts, “exercise” typically refers to the act of exercising one’s legal rights or powers. This can include various actions such as the execution of contractual rights, the utilization of statutory authority, or the enforcement of constitutional liberties. The exercise of legal rights is fundamental to the functioning of the legal system and is protected by law. Individuals and entities are entitled to exercise their legal rights within the boundaries established by law, subject to any applicable restrictions or limitations. The exercise of legal rights is often accompanied by corresponding duties or responsibilities, and parties are expected to act in good faith and in accordance with legal principles. In litigation, for example, parties may exercise their right to present evidence, cross-examine witnesses, or make legal arguments in court. Overall, the exercise of legal rights is a fundamental aspect of the rule of law and plays a central role in shaping legal outcomes and protecting individual liberties.
- To implement the rights of an option, by buying (in the case of call options) or selling (in the case of put options) the underlying asset.
- To exchange a right or warrant for the appropriate amount of stock.
Exercise. An option is the right to buy or sell a security or asset at a specified price at some future time. To exercise an option is to carry out the transaction specified in the option.
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This glossary post was last updated: 29th March, 2024.
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