💪 Able to use 📄 Able to put in effect

exercisable

6.7

Can be used or made active, for example a legal right

adjective
/ˈɛksərsaɪzəbl/

Specialized

: ejercitable

So in order for that option to become exercisable in the, the price of the underlying needs to double.

A gap option is a type of barrier option where the strike making the option exercisable differs from the strike used to calculate the payoff.

Examples

If I buy fire insurance on my house, then it's like buying a put option on my house, but it's only exercisable if there's a fire.
They become exercisable if any one person or group acquires 10% of Netflix stock.

Blog text (16)
And a gap option is a type of barrier option where the strike making the option exercisable differs from the strike used to calculate the payoff.
The rights granted in the contract are exercisable at any time during the agreement.
Employees may receive stock options that are exercisable after a certain period.
The new policy includes several exercisable options for improving employee benefits.

Synonyms

executable

vsexercisable

4 5.8

Possible to do with the available money and time

is specifically about use as a right or option, not practical feasibility

How Enforceable

binding

Formal

4.6

enforceable

Specialized

14 6.6

exercisable

Specialized

6.7

inapplicable

2 6.7

unenforceable

Formal

7 7.7

Surface Forms

exercisable positive

Morphology

exercisable = exercise (transparent) = exercis + able

Clear derivation from the verb 'exercise' + '-able' meaning 'able to be put into effect or used'; orthography shortens the verb form but does not affect derivation.

Etymology

Exercisable comes from the Latin word exercere, which also meant 'to put into action', and it is the same root as the English word exercise. So a right or option that is exercisable is one you can actually use or make take effect.