Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Strike Price

Updated on 2023-08-29T11:58:50.302100Z

Strike price, used in derivatives, is the price at which a security can be sold or purchased for the put or call option, respectively.  It is considered as the critical determinant of option value.

Strike price is also referred to as exercise price, at which a security can be purchased or sold by the option holder.