strike price

noun

: an agreed-upon price at which an option contract can be exercised

called also striking price

Examples of strike price in a Sentence

Recent Examples on the Web
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If the stock never trades above the strike price, the contract will expire and the call holder will lose the premium paid for the option. Jesse Pound, CNBC, 17 Apr. 2025 The investor was also given warrants at different strike prices. David Moin, Footwear News, 3 Sep. 2019 This trade would be profitable if the stock appreciates to, or even well through, the $50 strike price as of May expiration (although there may be opportunities to take the trade off profitably before the expiration date). Michael Khouw, CNBC, 31 Mar. 2025 The risk is that because one is short two puts for every one held long, the holder of this position could be forced to buy the shares at that $200 strike price. Michael Khouw, CNBC, 17 Mar. 2025 See All Example Sentences for strike price

Word History

First Known Use

1972, in the meaning defined above

Time Traveler
The first known use of strike price was in 1972

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Cite this Entry

“Strike price.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/strike%20price. Accessed 30 Apr. 2025.

Last Updated: - Updated example sentences
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