The difference between various striking prices of an underlying security. General guidelines are 10 points or more for stocks valued over $200 per share, 5 points for stocks selling over $25 but less than $200 per share, and 2-1/2 points for stocks valued under $25.
Related information about striking price interval:
- What is striking price interval? definition and meaning
Definition of striking price interval: The difference between various striking prices of an underlying security. General guidelines are 10 points or more for stocks ...
- What is strike price interval? definition and meaning
strike price interval. strike price · striking price interval. Definition. A price at which an investor buys if the option is a "call" or sells if the option is a "put" underlying ...
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- Glossary
Striking Price Interval. The distance between striking prices on a particular underlying security. Normally, the interval is 2.50 points for stocks under $25, 5 points ...
- Implied Binomial Trees - Haas School of Business - University of ...
III compares the Black-Scholes probability in each striking price interval with the discrete probabilities derived using the amended Longstaff method.