Recent Examples of strike price from the Web
The most-active VIX options on Monday were at strike prices like 15, 22, 18 and 16.
Investors can buy cheap out-of-the-money options with a strike price way below where the security currently trades.
At the time, the strike price was slightly above where Bank of America’s shares were trading.
The metal fell, striking Price and severely injuring him.
The calls with a strike price of 15 were bought at $1.45 each.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'strike price.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of strike price
Financial Definition of STRIKE PRICE
What It Is
The strike price is the specified price at which an option contract can be exercised.
How It Works
Strike prices are fixed in the option contract. For call options, the option holder has the right to purchase the underlying stock at that strike price up to the expiration date. For put options, the strike price is the price at which the underlying stock can be sold.
For example, an investor purchases a call option contract on shares of ABC Company at a $5 strike price. Over the life of the option contract, the holder has the right to exercise the option and purchase 100 shares of ABC for $500. If the price of ABC shares rises to $10, the option holder can lock in a $500 profit by exercising the option because it allows him to buy shares at $5 and sell them for $10 in the open market.
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