what does it mean to exercise an option
{"Image DocumentName": "Option exercise (2) Question: When do you exercise an option?", "Image ImageDescription": "Answer: Simple. Only when it\u2019s optimal to do so. That is, when you are better off exercising the option. Buy low, sell high Question: What if exercising the option does not make me better off? Answer: Simple. Don\u2019t exercise. After all, it\u2019s just an option. Tell student that I will explain what better off means later. Roughly speaking, better off means that you are able to buy low and sell high, i.e., your buying/purchase price is lower than your selling price. Just remember the rule, buy low, sell high .", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}