- call option) or sold (put option). The exercise price is determined at the time the option contract is formed.
Also known as the "strike price".
The exercise price is the key to profiting from options. A difference between the fixed exercise price and the market price at the time the option is exercised is what gives it value. Generally, the greater the difference between the exercise and market price at the time an option contract is written, the higher the premium required to purchase the option.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
exercise price — noun (stock exchange) Same as ↑striking price (see under ↑strike) • • • Main Entry: ↑exercise … Useful english dictionary
exercise price — Also known as the strike price. The price per security at which the holder of an option may buy or sell the underlying security. Related links share appreciation rights (SARs) Practical Law Dictionary. Glossary of UK, US and … Law dictionary
exercise price — The price at which the futures contract underlying a call or put option can be purchased (if a call) or sold (if a put). Also referred to as strike price. Chicago Board of Trade glossary The price at which an option may be used. The price at… … Financial and business terms
Exercise price — The price at which the underlying future or options contract may be bought or sold. The New York Times Financial Glossary * * * exercise price exercise price ➔ price1 * * * ► See Strike Price. * * * exercise price UK US noun [C] FINANCE … Financial and business terms
exercise price — strike price; = striking price The price per share at which a traded option entitles the owner to buy the underlying in a call option or to sell it in a put option … Accounting dictionary
exercise price — strike price; striking price The price per share at which a traded option entitles the owner to buy the underlying in a call option or to sell it in a put option … Big dictionary of business and management
Exercise price — The price at which the option buyer has the right to purchase or sell the object defined in an option contract. Also known as the strike price. See also Strike … International financial encyclopaedia
exercise price. — See striking price. * * * … Universalium
exercise price — noun Stock Exchange the price per share at which the owner of a traded option is entitled to buy or sell the underlying security … English new terms dictionary
exercise price — / eksəsaɪz praɪs/ noun a price at which an option will be put into effect … Dictionary of banking and finance