Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• EXERCISE PRICE
  
  An option's exercise price, also called the strike price, is the price at which you can buy or sell the stock or commodity that underlies that option. While the exercise price is set by the exchange on which the option trades and remains constant for the life of the option, the market value of the underlying investment rises and falls continuously during the period in response to market demand.
  
  Back