GlossaryAdvanced
Strike Price
The predetermined price at which an option contract can be exercised.
The strike price is the predetermined price specified in an options contract at which the underlying asset can be bought (for a call) or sold (for a put) if the option is exercised.
Whether an option is worth exercising depends on how the current market price compares to its strike price at or before expiry.
Examples
- A call option is generally only worth exercising if the market price is above its strike price.
- The strike price is fixed at the time the option contract is created.