Exercise period

The exercise period is a specific duration during which an option holder has the opportunity to convert their stock options into tangible shares by buying them at the predetermined strike price. It is a critical window that allows the option holder to take advantage of potential financial gains if the current market price of the company's stock exceeds the strike price. Once the exercise period expires, the option holder loses the right to exercise their options, potentially missing out on any future appreciation in the company's stock value. The exercise period is typically defined in the equity compensation plan or stock option agreement and is crucial for option holders to be aware of to make informed decisions about their stock options.