Strike price

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Related to strike prices: Call options

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 ?
The guaranteed price on offer to developers the so-called Strike Price dropped to 74.
The average strike price for the three lagoons under the Government's Contract for Difference support for renewable energy projects would be around PS111 per MWh, also less than that predicted for off-shore wind.
CfDs will be financial instruments between generators and a Government owned company designed to provide investors with a guaranteed fixed price for electricity output based on a 'strike Price', with payments being due to or by the generator depending on the prevailing wholesale market price when compared to the strike Price.
The call options on the index with strike prices of Rs 4,340 and Rs 4,650 are available for Rs 65 and Rs 28, respectively.
The maximum profit occurs when the price of the underlying security rises beyond the higher strike price call.
At present, large deals in some over-the-counter (OTC) contracts with the same strike prices and expiry months as exchange-traded contracts are already executed as block trades in HKEx's derivatives market.
With a current price of $113, the options with strike prices of $100, $105, and $110 would have no intrinsic value.
Thus, in principle, options written on several strike prices reveal a greater amount of information about market opinion than the single underlying futures price.
If the stock's price is below the strike price at expiration, the call will most likely expire worthless and the premium you received enhances your overall return on the stock.
An exchange-traded call option gives the buyer the right -- but not the obligation -- to purchase an underlying security at a given strike price until the expiration date.
At the time the QCC rules were written, listed options were available only at standardized maturity dates and strike price intervals (generally, intervals of $5).
The option strike prices and maturities are customized to meet the investor's needs.