Strike Price
/ˈstraɪk ˌpraɪs/
Definitions
- (n.) The fixed price at which the holder of an option may buy or sell the underlying asset.
The investor exercised the call option at the strike price of $50.
Forms
- strike price
- strike prices
Related terms
See also
Commentary
The strike price is essential in options contracts to determine the exercisable value and potential profit or loss; clarity in specifying it avoids ambiguity in option agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.