What is an Exercise Price?
The exercise price is also called the exercise price, and its full English name is Exercise price. It refers to the price specified in the options or futures contract that the holder can buy or sell the relevant shares at this price on the expiration or exercise date. Exercise price can also be called strike price. The strike price will vary depending on the particular call option. Option contracts allow option purchasers to purchase stock at a certain contract price.
Strike price
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- Chinese name
- Strike price
- Foreign name
- Exercise price
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- Strike price
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- The exercise price is also called the exercise price, and its full English name is Exercise price. It refers to the price specified in the options or futures contract that the holder can buy or sell the relevant shares at this price on the expiration or exercise date. Exercise price can also be called strike price. The strike price will vary depending on the particular call option. Option contracts allow option purchasers to purchase stock at a certain contract price.
- For example, the market price of a stock is 10 yuan per share. One can purchase an option contract, agreeing that it may be entitled to purchase the stock at a price of, for example, 11 yuan per share for a certain period of time.
- If the stock price really reaches 11 yuan or more, such as 13 yuan, on the agreed date or within the agreed date, then the contract holder can purchase the stock within the agreed amount at about 11 yuan instead of the market price of 13 yuan.
- If the stock price falls below 11 yuan or more, such as 9 yuan, on the agreed date or within the agreed date, then the contract holder can ignore the option contract and wait for it to expire slowly. The contract holder's loss is only the purchase That part of the contract.