Exercise price of put option

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Home Articles Tips Browse by Subject Term of the Day. Definition The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier.

Strike Price

The buyer's profit from exercising the option is the amount by which the spot price exceeds the exercise price in the case of a callor the amount exercise price of put option which the exercise price exceeds the spot price in the case pairs trading example stocks a put. In generalthe smaller the difference between spot and exercise price, the higher the option premium.

Related Terms implied volatility guarantee letter reload option subscription warrant if-converted method indexed stock options stock swap option schedule statutory stock option. Mentioned in these terms.

Nearby Terms exercise date exercise limit exercise notice exercise ratio exercise settlement Browse Definitions by Letter: Company Advertise with Us About us Content Licensing Careers Contact Us. URL to this page: