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Exercise price

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Exercise price
The price at which the security underlying an options contract may be bought or sold.

exercise price
The dollar price at which the owner of a warrant or an option can force the writer to sell an asset (in the case of a call option or warrant) or to buy an asset (in the case of a put option). The exercise price is set at the time the option is issued and, except for unusual instances that include warrants, remains constant until the option expires. A market price of an asset above, or expected to be above, an option's exercise price gives the option value. See also aggregate exercise price, step-up.

Exercise price. An option's exercise price, also called the strike price, is the price at which you can buy or sell the stock or other financial product that underlies that option.

The exercise price is set by the exchange on which the option trades and remains constant for the life of the option.

However, the market value of the underlying investment rises and falls continuously during the period in response to market demand.



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? Mentioned in ? References in periodicals archive
 
tendered their existing warrants to purchase an aggregate of 739,726 shares of common stock at an exercise price of $3.
In most cases, options are granted with an exercise price equal to the fair market value (FMV) of the stock at the date of grant.
 
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