Share this entry

Share this page

exercise price

Syllabification: ex·er·cise price

Definition of exercise price in English:

noun

Stock Market
The price per share at which the owner of a traded option is entitled to buy or sell the underlying security.
Example sentences
  • For example, if a manager exercises 100 stock options with a difference of $50 between the market price and the exercise price and then sells the shares, he walks away with $5,000 in cash.
  • Instead, they use the other option, the intrinsic value approach, which recognizes as compensation expense only the amount in excess of the market price over the exercise price on the grant date.
  • Also in December, it issued almost 1.6 million new share options in December with an exercise price of $9.82 per share, replacing options with an exercise price of more than $5.50 each.

Definition of exercise price in:

Share this entry

Share this page

 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day resilient
Pronunciation: rəˈzilyənt
adjective
able to recoil or spring back into shape…