Difference between revisions of "Exercise value"

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Revision as of 09:50, 28 October 2019

Exercise value is a value that is equal to the current price of the stock (underlying the option) minus the strike price of the option.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Exercise value. Equal to the current price of the stock (underlying the option) minus the strike price of the option.

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