Exercise date

The exercise time or date is an important component of options and other derivative financial instruments .

The point in time denotes the key date on which the option matures and determines the day on which the right evidenced in the option contract can be exercised ( European option ) or up to which the right can be exercised ( American option ).

Example: You buy an option that entitles you to buy 100,000 barrels of oil on May 1, 2005 at a value of $ 23. In this case, May 1, 2005 is the exercise date.