Define: Strike Price

UK Accounting Glossary

Definition: Strike Price



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Full Definition of Strike Price


The strike price of an option is the price at which the owner of the option is entitled to exercise his option to buy or sell the underlying security or asset. The strike price of a call option represents the price at which the underlying security or asset can be purchased by exercising such option prior to its expiration. On the other hand, the strike price of a put option represents the price at which the underlying security or asset can be sold by exercising such option prior to its expiration. The strike price is also called the exercise price. The strike price determines the intrinsic value of an option. The premium of an option will vary significantly depending on the strike price. A strike price is typically set at regular intervals around the current market price.


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https://payrollheaven.com/define/strike-price/
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Strike Price. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 29, 2020 https://payrollheaven.com/define/strike-price/.
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Strike Price. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/strike-price/ (accessed: March 29, 2020).
American Psychological Association (APA):
Strike Price. PayrollHeaven.com. Retrieved March 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/strike-price/

Definition Sources


Definitions for Strike Price are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.