Exercise price

(redirected from exercise prices)
Also found in: Dictionary.

Exercise price

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

Strike Price

In options, an agreed-upon price for which the underlying is bought (in case of a call) or sold (in case of a put) if the option is exercised. For a call option to be profitable, the strike price must be lower than the market value of the underlying at the time the option is exercised. The opposite is true for a put: the strike price must be higher than the market value. In most cases, the amount of the strike is stated in the option contract; however, in Asian options, the strike is a formula, rather than a set price. For example, the strike may be the average price of the underlying over a set period of time. The strike price is also known as the exercise price or the striking price.

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.

References in periodicals archive ?
No options may ever be granted or modified with an exercise price less than the fair market value (FMV) as of the grant date (32);
Finally, Part V discusses the potential additional benefit of providing in the option plan for the use of previously acquired shares of employer stock to pay the exercise price under an ISO, and explores other means of facilitating the exercise of ISOs by employees.
Plus, you should disclose the range of exercise prices (in addition to the weighted average exercise price) and the weighted average remaining contractual life for options outstanding as of your last balance sheet.
Under this guideline, most companies have offered employee stock options with fixed terms--both the exercise price and the number of shares are fixed at the grant date.
The Audit Committee believes, however, that this practice was not used to select favorable exercise prices.
The Special Committee found that there were occasions after the grant date and exercise price was set that administrative changes were made to the grant lists.
The grants were issued on February 18, with 8 employees receiving 68,250 options at an exercise price of $40.
The short-term reduction in warrant exercise prices is intended to provide a quick and inexpensive means to obtain additional capital in a difficult climate for raising capital by entities such as the Company.
OTCBB:PWRB) announced the exercise prices and ratios for its outstanding warrants.
Quantum Corporation (NYSE:DSS) today announced it will offer its employees a Voluntary Stock Option Exchange program through which eligible employees will be granted new options that are intended to replace certain previously granted options that have exercise prices higher than the current market price for its shares.
The Board's decision reflects a continuing commitment by Indus to retain employees whose options have exercise prices above the current market price of the stock.

Full browser ?