Startup Terms Glossary
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.