This office lease form states that the tenant shall exercise its option to renew this lease upon written notice given to the landlord no less than eighteen (18) months before the end of the lease term.
This office lease form states that the tenant shall exercise its option to renew this lease upon written notice given to the landlord no less than eighteen (18) months before the end of the lease term.
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To exercise an option, you simply advise your broker that you wish to exercise the option in your contract. Your broker will initiate an exercise notice, which informs the seller or writer of the contract that you are exercising the option.
Upon exercise of a call, shares are deposited into your account and cash to pay for the shares and commission is withdrawn (just like a normal stock purchase).
Normally, options are exercised using a unilateral contract modification. Whether unilateral or bilateral, the modification or other written document exercising the option must cite the option clause as the authority for the government action.
Exercising stock options means you're purchasing shares of a company's stock at a set price. If you decide to exercise your stock options, you'll own a piece of the company. Owning stock options is not the same as owning shares outright.
For example, a call option with a strike price of $50 would be in-the-money if the market price is $55. The investor who is exercising the call option would have the opportunity to purchase the stock at $50 and therefore earn $5. An in-the-money put option is when the exercise price is above the market price.