Exercise value
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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.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.