Step 5 of 9 in Derivatives without illusionsCourse outline →
Strike price
The price at which the option holder may buy or sell the underlying asset.
Also known as: exercise price
Related terms
Next step in Derivatives without illusions · explainerContango and backwardation: why a long futures position melts awayA long futures position melts away not because the underlying asset falls, but because by the settlement date the futures price has to converge with the spot price.Read next →
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