Brokerages automatically exercise an ITM option contract unless the contract owner instructs them otherwise.

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If the contract owner is unhappy with the current rate, he typically is faced with stiff surrender charges which deter him from withdrawing funds from the contract or switching to another insurance company offering higher rates.

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Under a newly extended contract, the owner of P and O will manage the movement of heavy armor, helicopters and other military materiel through the Texas seaports of Beaumont and Corpus Christie.

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