Exercise price
Exercise price (alternatively known as strike price) is the price stated in the option contract which the security can be bought (or sold).
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Exercise price. The price stated in the option contract which the security can be bought (or sold). Also called the strike price.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Strike price (exercise price). The price that must be paid for a share of common stock when an option is exercised.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
