strike price


Definition of strike price

: an agreed-upon price at which an option contract can be exercised

called also striking price

Examples of strike price in a Sentence

Recent Examples on the Web What is more, Berkshire also owns more than 80 million warrants with a strike price of $59.62 that kick in after the preferred shares are redeemed. Jinjoo Lee, WSJ, 3 Aug. 2022 On expiry, if the market price of the underlying asset is below the strike price, the call buyer will not exercise the right to buy the contract, and the premium (yield) is kept by the option seller. Laura Vidiella Del Blanco, Forbes, 1 July 2022 Employee equity upside is tied to the company’s 409A valuation, which represents the fair market value of a company’s common stock and is used to determine the option strike price. Dharmesh Thakker, Forbes, 22 Apr. 2022 The figures show that investors placed some highly optimistic bets, with many purchasing call options on ether with a $5,000 strike price. Charles Bovaird, Forbes, 29 Oct. 2021 Tesla’s board of directors set out 10 ambitious goals for Musk, promising him a total of 26,374,505 shares of Tesla stock options, with a strike price of $6.24 per share, if they were all met. Vieje Piauwasdy, Fortune, 10 Nov. 2021 Warrants typically have a strike price of $11.50, meaning the holder would pay $11.50 to receive a share of the company. Amrith Ramkumar, WSJ, 8 Feb. 2022 In response, JPMorgan says it was allowed—and did—lower the strike price of the warrants. Jessica Mathews, Fortune, 23 Nov. 2021 Musk's strike price is $70, at which Tesla was selling when the program launched. Shawn Tully, Fortune, 17 Mar. 2021 See More

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

1972, in the meaning defined above

Learn More About strike price

Time Traveler for strike price

Time Traveler

The first known use of strike price was in 1972

See more words from the same year

Dictionary Entries Near strike price

strike plate

strike price


See More Nearby Entries 

Statistics for strike price

Last Updated

8 Aug 2022

Cite this Entry

“Strike price.” Dictionary, Merriam-Webster, Accessed 16 Aug. 2022.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon


Test Your Vocabulary

Odd Habits and Quirks

  • image1926873504
  • Which of the following best describes an easily irritated person?
True or False

Test your knowledge - and maybe learn something along the way.

Universal Daily Crossword

A daily challenge for crossword fanatics.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!