Startup Terms Glossary
What is Exercise Price?
The exercise price, or strike price, is the amount at which a shareholder can buy or sell derivatives with trading options. Derivatives are financial products or contracts that have values based on underlying assets. The exercise price is pre-determined and set at intervals.
Exercise Price Examples
Examples of the points involved in an exercise price-based purchase:
- Point 1. Buyer and seller of an option enter into an agreement
- Point 2: Buyer has the right to sell short a specified number of shares
- Point 3: Buyer profits if stock price dips below the option exercise
Here’s another web page about exercise price.
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Licensed to practice law in the states of Missouri and Kansas. Have been licensed to practice law for 44 years. Have been AV rated by Martindale Hubbel for almost 30 years.
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David A.
David Alexander advises clients on complex real estate transactions, including the acquisition, disposition, construction, financing and leasing of shopping centers, office buildings and industrial buildings throughout the U.S. An experienced real estate attorney, David reviews, drafts and negotiates all manner of retail, office and industrial real estate agreements, including purchase and sale agreements, construction contracts, leases and financing documentation.
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