The act where an owner of an option buys or sells the underlying asset is called ______ the option.

Question

Quizplus · Accepted Answer

Exercising an option means the owner is choosing to buy or sell the underlying asset at the specified price, which is the whole point of holding an option in the first place. "Striking" is not a term used in options trading, "opening" refers to initiating a new options position, "splitting" usually refers to stock splits, and "strangling" is a complex options strategy involving both put and call options.

The Act Where an Owner of an Option Buys or Sells