Investor Glossary-strike priceInvestor Glossary-strike priceInvestor Glossary-strike priceInvestor Glossary-strike priceInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Strike Price

The HTML to link to this page
 

The strike price of an option is the price at which the owner of the option is entitled to exercise his option to buy or sell the underlying security or asset. The strike price of a call option represents the price at which the underlying security or asset can be purchased by exercising such option prior to its expiration. On the other hand, the strike price of a put option represents the price at which the underlying security or asset can be sold by exercising such option prior to its expiration. The strike price is also called the exercise price. The strike price determines the intrinsic value of an option. The premium of an option will vary significantly depending on the strike price. A strike price is typically set at regular intervals around the current market price.



Rate this Strike Price definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: balance sheet, Zero Cost Collar, LIBOR, implied volatility, wholly-owned subsidiary, inflation, per diem, Key Rate Duration, open position, limit order, 144a, ex-dividend, covered put, EBITDA, option premium, retained earnings, annual return, quality assurance, diluted share, labor relations, ex-dividend date, 401a, average price per share, deferred revenue, 1035 exchange, risk management, in escrow, command economy, required rate of return, liquidity ratio, minority interest, cancelled check, current ratio, reverse mortgage, FTSE, 1031 exchange, real GDP, FICO score, stock split, irrevocable trust, margin rate, APR, VIX, phantom income, stock market close, deferred tax, dividends payable, debt service coverage, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use