Definition strike price stock options

Show more usage examples Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc. Home Articles Tips Browse by Subject Term of the Day. Definition The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier.

The buyer's profit from exercising the option is the amount by which the strike price exceeds the spot price in definition strike price stock options case of a putor the amount by which the spot price exceeds the strike price in the case of a call.

In generalthe smaller the difference between spot and strike price, the higher the option premium. Related Terms bullet dodging put synthetic long stock aggregate exercise price series adjusted exercise price street book asset-or-nothing call option option pricing model bargain element.

Strike Price | Definitions, Examples, & Considerations

Mentioned in these terms. Nearby Terms strict liability strike strike index strike price interva Browse Definitions by Letter: Company Advertise with Us About us Content Licensing Careers Contact Us. URL to this page: