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Exercising an option

If you wish to exercise your option, you need to notify your broker who is required to submit an exercise notice to ASX Clear. When ASX Clear receives an exercise notice, it will randomly select a writer who has sold the same type of option and will assign the exercise to the writer.

Tip

It is too late to close out your position once ASX Clear has assigned an exercise notice to an option you have sold.

When an option is exercised, the transaction is settled three business days after the option is exercised; that is, T+3. This is in line with settlement for stocks. The reason for this is so that the option writer is able to buy the underlying stock from the market (which settles T+3) if they need to in order to comply with the exercise of a call option and they do not currently hold that stock.


  

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