- 1The price fixed by the seller of a security after receiving bids in a tender offer, typically for a sale of bonds or a new stock market issue.More example sentences
- If the price of the stock falls below the strike price, the put seller will have to purchase shares from the put buyer when the option is exercised.
- In 1999 he was issued 400,000 at a strike price of $28.23.
- If your stock price tumbles below the strike price, these losses will be offset by gains in the put option.
- 2The price at which a put or call option can be exercised.More example sentences
- The drawback of a fence is that it limits the gains of a futures price rise to the strike price of the call option sold.
- Say you own a call option with a strike price of 90 that expires in two weeks.
- Finally, both put and call options would be at the money when the strike price and underlying expire at the exact same price.
More definitions of strike priceDefinition of strike price in:
- The British & World English dictionary