Strike price


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Related to Strike price: call option

Strike price

The stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract.

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.

strike price

The exercise price at which the owner of a call option can purchase the underlying stock or the owner of a put option can sell the underlying stock.

Strike price.

The strike price, also called the exercise price, is the price at which you as an options holder can buy or sell the stock or other financial instrument underlying the options contract if you choose to exercise before expiration.

While the strike price is set by the exchange on which the option trades, and changes only if there's a stock split, merger, or some other corporate action that affects the underlying instrument, the market price of the underlying instrument rises and falls during the life of the contract.

As a result, the underlying instrument might reach a price that would put the strike price in-the-money and make exercising the option at the strike price, or selling the option in the marketplace financially advantageous, or it might not. If not, you let the option expire.

References in periodicals archive ?
From the grant date until the exercise date, cumulative compensation expense is measured by multiplying the number of options by the difference between the market price of the stock and the strike price. Compensation expense for a particular period is increased if cumulative compensation expense increases during the period and decreased if cumulative compensation decreases during the period.
You incur a significant loss, but you can't collect on the derivative because you haven't met the strike price. Insurance does away with the speculative nature of hedging this business risk."
Unfortunately, Citicorp does not have much of an incentive to get more than the strike price for its stock, since there is a $300 million floating rate first mortgage on the property that also allows Trump to defer some of the debt.
[1] The March option "rolls" the position forward, the 95 put strike "rolls" the strike price closer to the lower end of the forecasted trading range.
* Less than a minute later, a trader bought 4,726 Activision call options with a $52 strike price expiring on Sept.
However, at this stage Mr Dixon said it was too early to give any indicative range on a potential strike price.
Also, Christian Moller Laursen, group CFO, on 23 April 2018, was granted 28,000 options vesting after three years with a Black & Scholes value per share option of DKK9.26, market value of DKK259,280 and a strike price per share of 37.9.
* At 10:39 a.m., a trader bought 850 Facebook call options with a $185 strike price expiring on Friday near the ask price at 85 cents.
Now, Saga is set to widen its total shares in the radio broadcasting company to 1,170,000, thanks to this deal and the May 21 acquisition of 2,754 Class A shares at a strike price of $28.3487.
The question raised at the time was whether the regulators determined if the strike price was fair or foul.
The strike price of DKK333 has been fixed at 110% of the price of Topdanmark's shares on 28 December 2018 (average of all trades).
In the summer the UK Government announced it would not back TLP's request for a strike price (paid for by consumers' energy bills) of PS92.50p per megawatt hour of energy produced for 35 years.