Home| Term of the Day strike price The specified price on an option contract at which the contract may be exercised, whereby acall option buyer can buy the underlier or a put option buyer can sell the underlier. The buyer'sprofit from exercising the option is the amount by which the strike price exceeds the spot price(in the case of a put), or the amount by which the spot price exceeds the strike price (in the case of a call). In general, the smaller the difference between spot and strike price, the higher the option premium. also called exercise price. |
Term of the Day strike price
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