Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

exercise value

Read a random definition: standby commitment

A quick definition of exercise value:

Exercise value: The benefit that an option holder gets from using their option.

Exercise value is the value that an option holder receives when they use their option to buy or sell an underlying asset. It is the difference between the current market price of the asset and the strike price of the option. For example, if an option holder has the right to buy a stock at $50 per share and the current market price is $60 per share, the exercise value of the option is $10 per share. This value is important because it represents the potential profit that the option holder can make by using their option.

A more thorough explanation:

Definition: Exercise value refers to the value that an option holder can derive from using the option.

For example, let's say you hold a call option on a stock with a strike price of $50. If the current market price of the stock is $60, you can exercise your option and buy the stock at the strike price of $50. This means you can immediately sell the stock for a profit of $10 per share. The exercise value of your option in this case would be $10.

Another example would be if you hold a put option on a stock with a strike price of $100. If the current market price of the stock is $80, you can exercise your option and sell the stock at the strike price of $100. This means you can immediately buy the stock back at the market price of $80 and make a profit of $20 per share. The exercise value of your option in this case would be $20.

These examples illustrate how exercise value can be used to generate profits for option holders. By exercising their options, they can buy or sell the underlying asset at a favorable price and make a profit.

exercise price | exercitalis

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
madollyy
20:41
My university does not list A+
JumpySubsequentDolphin
20:42
yeah my university’s the same way, so frustrating! still a great GPA and with a killer LSAT score you’ll be good to go :)
JumpySubsequentDolphin
20:42
if you have the means, I’ve heard private tutoring is the way to go
madollyy
20:44
Fingers crossed! I mean I'd be so so glad to go to law school period, but I am a bit of an overachiever. Dream is Berkeley rn, but I'm of course happy to go anywhere that lines up with my plans. And is kind enough with scholarships lol
madollyy
20:44
I'll have to see if my parents are willing to support that. I'm living on my own but ik if it'd help me they'd be willing to help
JumpySubsequentDolphin
20:47
who knows, you might not even need a tutor! Take a diagnostic and see where you stand :)
Dkk
21:03
@madollyy: yeah that happend to me too with my community college transcript. You can try calling to see if they can alter your transcript but like mine would not do it.
Dkk
21:04
Ask @babycat to tutor you @madollyy
cat food is expensive tho
21:09
I HOPW THAT ISNT REAL
@JumpySubsequentDolphin: I would push back on this. I think for the vast majority of people LSAT tutoring is unnecessary.
21:09
oh its from nov 12 phew
21:09
i was about to have a heart attack
21:09
at the berk decision lmao
@madollyy: I focus on bringing your GPA up as much as possible in the last semester because once you graduate you cannot change that. So don't study for the LSAT next semester if you think that would impair your ability to get straight A's. As for LSAT studying, I would recommend LSAT Demon (ik controversial), the Loophole, and Reading Comp Hero.
*I would focus
JumpySubsequentDolphin
21:11
@texaslawhopefully: oh I’m not sure hahaha im just basing off of my friend who got a tutor bc she was rly struggling and it seemed like it helped her!
Yeah, that's fair! For some people it can help a lot. I'm just saying in general I don't think it is necessary unless you are trying to finetune a very specific area (or get to the high 170s because that is another thing in and of itself) OR are just terrible at the test. I tutor the test and I find that most people can improve just as much through self-study.
JumpySubsequentDolphin
21:13
that makes sense for sure
JumpySubsequentDolphin
21:13
i think for her it was a lack of discipline more than anything else tbh. she could not get herself to meaningfully study on her own
madollyy
22:05
I've finished all my major requirements, so I'm taking pretty much all electives next semester. Keeping one major specific class bc I'm majoring in it for a reason haha. But I'll be pretty free to study and try and improve my GPA. I will try self study first, see where that gets me. If that doesn't work I'll look into tutoring!
the way there probs won't be another wave until after thanksgiving LMFAO
i hate this
JumpySubsequentDolphin
22:07
omg i just got a Snapchat memory of my friend losing her mind bc she thought Eminem was black
JumpySubsequentDolphin
22:07
SHES FROM MICHIGAN
JumpySubsequentDolphin
22:07
THIRTY MINS AWAY FROM DETROIT
babycat
22:10
most of the stuff a tutor will teach you is stuff you can figure out yourself if you’re sufficiently motivated. if you would benefit from some support and structure tutoring can be helpful
babycat
22:13
thanks for the plug dk you’re a sweetie
^^one hundred percent agree
babycat
22:16
texas what made you decide you wanted to go to law school so young? just opportunity cost or something else?
LSD+ is ad-free, with DMs, discounts, case briefs & more.