option exercise

Discussion in 'Options' started by accelas, Nov 12, 2010.

  1. accelas


    US equity option are automatically exercised when it's at least $0.01 in the money. But what price do they use to determine if it should be used to exercise? do they use the price at 4:00pm closing or 8:00pm after market trading closing? Do they use middle of bid/ask or last traded?