Strike Price

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What is a Strike Price?

A strike price, also called an exercise price, is the cost at which a security can be bought or sold. The strike price of a call option is the price that allows a security to be bought by a shareholder. Conversely, the strike price of a put option coincides with the price at which a shareholder can sell a security.

Strike Price Examples

Examples of elements of strike price:

  • Example 1. Used to determine the value of an option
  • Example 2. Strike prices that are close to option value make securities more attractive to investors
  • Example 3. Set by the American Stock Exchange, the New York Stock Exchange, and the Chicago Board of Options Exchange

Here’s another web page about strike price.

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