A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.
Found on
http://www.duke.edu/~charvey/Classes/wpg/bfglosa.htm
See Asian Option.
Found on
http://www.metalbulletin.com/Glossary.html
Occurs after an option expires. Each exchange and its clearing house has rules which govern this exercise. There are minimum in-the-money requirements. A holder of an option must inform the clearing house not to automatically exercise an option. These instructions not to exercise may be due to relatively high transaction costs, increases in positio...
Found on
http://www.oasismanagement.com/glossary/
No exact match found.
