What is a Strike Price? Definition: The strike price, also known as the exercise price, is the stock price that an option contract is exercised at allowing shares can be purchased or sold. This is one of the most important elements of options pricing because it reflects the risk associated...
The exercise or strike price is the fixed price at which the underlying stock is bought or sold in call and put options and derivatives. It's unique to each option. There are two types of options: call and put. A call allows buying at the exercise price until expiration, while a put ...
What are strike price options? What is monolithic pricing? What is cash wage? What is a pay period? What is FOB price? What is a leasehold? Define unit price What is market place design? What is a mill rate? What is a royalty rate?
Past performance is no guarantee of future results, but the 10-year return of ETFs can be a starting point. Marguerita ChengFeb. 20, 2025 7 Best Recession Investments In a recession, prioritizing liquidity and safety ensures access to funds while maintaining steady, low-risk returns. ...
This is calculated as a gain on the stock of $0.70 ($40 minus $39.30, which was the original price), plus the $0.90 premium per share. Maximum profit is realized if the market price rises to the strike price. But seller beware: This $1.60 per share is the maximum you will make ...
An agreement, especially one that is mutually beneficial. Steal (transitive) To get or effect surreptitiously or artfully. He stole glances at the pretty woman across the street. Deal A business transaction Struck a deal to buy a car dealership. Steal To acquire at a low price. He stole th...
A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price. A bull call spread is established for a net debit (or net cost) and profits as the underlying stock rises in price.
In Options, what is the Strike Price? Discussion Comments WiseGeek, in your inbox Our latest articles, guides, and more, delivered daily. Subscribe Categories Health Technology Finance Culinary Culture Home Get Around About Contact Find Us
A naked put has limited upside profit potential and, in theory, downside loss potential that exists from the current price of the underlying all the way down to if it goes to zero. A naked put's breakeven point for the writer is its strike price, plus the premium received. ...
Strike price: This is the price at which an option can be exercised. Expiration date: This is the date at which an option expires and becomes worthless. Option premium: This is the price at which an option is purchased. Key Takeaways ...