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Exercise
Exercising an option means the holder chooses to execute their right to buy (for call options) or sell (for put options) the underlying asset at the agreed-upon strike price. American-style options can be exercised at any time before expiration, while European-style options can only be exercised on the expiration date. Exercising is typically done when an option is in the money and offers a profit advantage over selling the contract. See also: Assignment