The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier. The buyer's profit from exercising the option is the amount by which the spot price exceeds the exercise price (in the case of a call), or the amount by which the exercise price exceeds the spot price (in the case of a put). In general, the smaller the difference between spot and exercise price, the higher the option premium. also called strike price.
Related information about exercise price:
- Strike price - Wikipedia, the free encyclopedia
In options, the strike price (or exercise price) is the fixed price at which the owner of an option can purchase (in the case of a call), or sell (in the case of a put), ...
- Exercise Price Definition | Investopedia
The price at which the underlying security can be purchased (call option) or sold ( put option). The exercise price is determined at the time the option contract is ...
- What is exercise price? definition and meaning
Definition of exercise price: The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier ...
- Exercise Price - Financial Dictionary - The Free Dictionary
Also found in: Dictionary/thesaurus, Wikipedia, 0.01 sec. Exercise price. The price at which the security underlying an options contract may be bought or sold.
- Strike or Exercise Price on Call Options | 1option.com
The strike price (exercise price) is the level at which the buyer of a call option can exercise his right to buy the stock. If an option trader buys a $50 call, he has ...
- Exercise Price Definition - What is Exercise Price?
What is Exercise Price? Find out right now with a helpful definition and links related to Exercise Price.
- Exercise price
The exercise price, also called the strike price, of a future or option, is the price at which a derivative gives the right or obligation to buy or sell the underlying ...
- Multiple Choice Quiz - The McGraw-Hill Companies
B), The value of one share of stock plus the exercise price ... A), Above the exercise price if the stock price rises and below the exercise price if it falls. B), Equal ...