Exercise value

EXERCISE VALUE - The value of an in-the-money option if it was exercised today (before the expiration d...
EXERCISING THE OPTION - The act of buying or selling the underlying asset via the option contract.

Exercise value
The amount of advantage over a current market transaction provided by an in-the-money
option.
Expected value ...

Dictionary Term
exercise value
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options See: Naked options Uncovered put A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the ...

The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, and the riskless return.

Uncovered put A short put option position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put.

In finance, the time value (TV) (extrinsic or instrumental value) of an option is the premium a rational investor would pay over its current exercise value (intrinsic value), based on its potential to increase in value before expiring.

In options, the term describes the amount of the price of an options contract in excess of the exercise value. In closed-end mutual funds, it refers to a fund whose share price exceeds its net asset value.

A put writer is considered to be uncovered if he does not have a corresponding short stock position or has not deposited cash equal to the exercise value of the put.

Also called time value, the amount by which the option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, ...

has cash on deposit in an amount equal to the exercise value of the put, or
has a short position in the underlying shares
Otherwise, the put is uncovered.

The difference between the exercise price fo the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
Exercise value ...

See also: Banks, Time Value, Expense, Expected return, Intrinsic value