Options & derivatives
Strike price
Also called Exercise price
The price at which an option holder can buy or sell the underlying asset.
How it works
The strike, together with the expiry date, defines the contract. The relationship between the strike and the current price determines whether an option has intrinsic value.
Related terms
- OptionA contract giving the right, but not the obligation, to buy or sell something at a set price by a set date.
- In the moneyWhether exercising an option now would produce a gain.
- Intrinsic value (options)What an option would be worth if it were exercised immediately.
- ExpiryThe date after which an option ceases to exist.
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