strike price
/straɪk praɪs/
the predetermined price at which an option holder can buy or sell the underlying asset
strike price in a sentence
“With the stock at $110, the $100 strike price call option was in the money.”
Origin of strike price
From striking a deal at a fixed price; used in options markets since the 1970s
Related Words
premium
the price paid to purchase an options contract
implied volatility
the market's forecast of likely future price movement, derived from current option prices
delta
the rate of change in an option's price relative to a $1 move in the underlying asset
theta
the rate at which an option loses value each day due to the passage of time; time decay
hedge
an investment made to reduce the risk of adverse price movements in an asset
futures contract
an agreement to buy or sell an asset at a predetermined price on a specific future date