# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Exercise

To exercise an option is to use the right of the holder to buy or sell the underlying security on which the option is based at the strike price. The option holder notifies the writer or seller that they wish to exercise or assign their option. The writer is then obliged to buy or sell the underlying asset to the holder on the terms agreed.

See also: Call Option, Put Option, American Option, European Option