![]() ![]() In certain places, if the trader doesn’t specify exercising instructions, it goes for compulsory exercising by the regulatory authority and that day is termed as the exercise date for that option.ĭescription: In the Indian context, exercise date doesn’t make much sense as options are cash settled. In European style option, the exercise date is the same as expiry date. The right to decide the exercise date before the expiry date, in case of American style options, lies with the holder or owner of an option. ![]() ![]() It can be on or before the expiry date based on the option style (American or European). Definition: Exercise date refers to the date on which a trader decides to exercise an option (Call/Put) on an exchange or with a brokerage whether bought or written/sold where ‘exercise’ means making use of the actual right specified in the contract. ![]()
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