One of the mysteries of the English language finally explained.
1The price fixed by the seller of a security after receiving bids in a tender offer, typically for a sale of bonds or a new stock market issue.
- ‘If the price of the stock falls below the strike price, the put seller will have to purchase shares from the put buyer when the option is exercised.’
- ‘The eventual strike price will depend on what volume of shares is tendered at what level.’
- ‘For a call option, ‘in the money’ means that the underlying price is greater than the option strike price.’
- ‘In 1999 he was issued 400,000 at a strike price of $28.23.’
- ‘If your stock price tumbles below the strike price, these losses will be offset by gains in the put option.’
2The price at which a put or call option can be exercised.
- ‘Then you have the 6.38 million options which were actually exercised last year at an average strike price of about $25.’
- ‘A call option was sold at a strike price of $15, generating $135.’
- ‘The drawback of a fence is that it limits the gains of a futures price rise to the strike price of the call option sold.’
- ‘Say you own a call option with a strike price of 90 that expires in two weeks.’
- ‘Finally, both put and call options would be at the money when the strike price and underlying expire at the exact same price.’
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