Exercise limits are restrictions on the number of options that can be exercised by an investor in a given day or series of days.

Question

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Exercise limits are put in place to prevent unusual market circumstances or delays in reporting from resulting in manipulation of the market. These limits may apply to individual investors or to the market as a whole, and may vary depending on the type of option and the exchange on which it is traded.

Exercise Limits Are Restrictions on the Number of Options That