Business and Personal Finance Dictionary

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• STRIKE PRICE
  
  The strike price, also called the exercise price, is the price at which you can buy the stock or commodity underlying an option. While the strike price is set by the exchange on which the option trades, the price of the underlying investment rises and falls, depending on its performance and market conditions. As a result, the underlying investment might be selling at a price that would make buying at the strike price a good deal, or it might not. If not, you simply let the option expire.
  
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