exercise price


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Related to exercise price: call option, put option

exercise price

n
(Stock Exchange) stock exchange the price at which the holder of a traded option may exercise his or her right to buy (or sell) a security
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References in periodicals archive ?
No options may ever be granted or modified with an exercise price less than the fair market value (FMV) as of the grant date (32);
After developing a stock-price tree, the next step is to calculate the intrinsic value of the option at each terminal node by subtracting the option's exercise price (B8) from the stock price at that node.
The analysis incorporates the net value realized after the second year which is derived from the proceeds from the stock's sale, total taxes paid and, in the case of a buy-and-hold strategy, the cost of financing to fund the exercise price and tax withholding.
Finally, Part V discusses the potential additional benefit of providing in the option plan for the use of previously acquired shares of employer stock to pay the exercise price under an ISO, and explores other means of facilitating the exercise of ISOs by employees.
Starting with calendar-year 1996 financial statements, the standard requires expanded disclosures, rather than recognition of compensation cost, for fixed stock options whose exercise price is at least equal to the stock price at the option grant date (in-the-money options).
The exercise price will be the stock's book value at the grant date, adjusted for any outstanding NQSOs.
Under this guideline, most companies have offered employee stock options with fixed terms--both the exercise price and the number of shares are fixed at the grant date.
It was assumed that the intermediary paid the exercise price and withholding taxes to the donor's employer directly.
A disqualifying disposition causes the "spread" between the stock's fair market value (FMV) at the exercise date and the exercise price to be treated as ordinary income to the ISO holder and a deduction to the corporation.

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