   
|
|
Strike Price
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |