Exercise price


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Related to Exercise price: call option, put option

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 ?
Unlisted Options 2,743,184 Exercise Price $0.2912, Expiry 9 December 2019
American International Group Inc (AIG) (NYSE:AIG) disclosed on Thursday that as per the terms of the outstanding warrants (CUSIP number 026874156) to buy shares of AIG common stock of par value USD2.50 per share, the warrant exercise price will be lowered to USD43.1179 per share and the number of shares of common stock receivable upon warrant exercise will increase to 1.045.
The Warrants will now entitle the holder thereof to purchase one common share of Star at an exercise price of USD 0.07.
The exercise price of the warrants is fixed and the warrants do not contain any variable pricing features or any price-based anti-dilutive features.
Also, when exercising the option, the option holder will receive a cash payment from Mellby Gard corresponding to the market value of the ordinary share reduced by the exercise price, however, no more than SEK28.80 per option.
The warrants contain customary anti-dilution adjustment provisions and an exercise price protection provision for subsequent issuances below the then current exercise price.
Further information on the Sterling Warrants and the adjustments to the Sterling Warrants exercise price and number of shares of Comerica Common Stock receivable upon exercise, including the Federal income tax treatment of these adjustments, will be available in the Investor Relations section of Comerica's website (www.comerica.com).
29 and shared with the Securities & Exchange Commission on Thursday (12/8) via a "DEF 14C" filing, reduces the exercise price of all outstanding stock options with a price higher than $9 per share.
In June 2014, Northquest issued Nordgold 1,388,889 warrants with an exercise price of CDN 0.24 per warrant; in July 2014, Northquest issued Nordgold 5,000,000 warrants with an exercise price of CDN 0.27 per warrant; and in June 2015, Northquest issued Nordgold 11,111,111 warrants with an exercise price of CDN 0.30 per warrant.
Additionally, pursuant to the terms of the Subscription Agreement, upon completion of the Proposed Subscription, AceA will be granted 40,000,000 options (Option), entitling AceA to subscribe for an aggregate 40,000,000 new ordinary shares (Option Shares) in the capital of Gossan Hill at A$0.10 (Exercise Price) per Option Share.
CARLSBAD, Calif, July 19, 2013 -- International Stem Cell Corporation (OTCQB: ISCO) announced the pricing of a public offering of 20,000,000 units, each unit consisting of one share of our common stock and one Series A Warrant to purchase one share of our common stock at an exercise price of $0.15 per share.
Unlike standard options that have a set exercise price, indexed options have an exercise price that rises or falls based on an index of the company's competitors or a broader market index.

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