Definition of "unexercise" in English

verb

1. (transitive, rare) To undo the use of (a right, an option, etc.).

   • 2018, Ginsburg & Levin, Rocap, Mergers, Acquisitions, and Buyouts, December 2018 Edition Where stock prices fall sharply after an executive exercises a Newco stock option, the executive may end up holding Newco stock worth less than the taxes triggered by option exercise. In such case, the executive may wish to "unexercise" the option and calculate his taxable income as if the option had never been exercised.