| Strike
Price |
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The
stated price per share for which underlying stock may be purchased
(for a call) or sold (for a put) by the option holder upon exercise
of the option contract.
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When
you exercise your option this is the value that your get the shares
for, if this is below the market value of the stock then your profit
is the spread between the two prices.
Option strike prices typically increment $2.50 or $5.00. |
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Dictionary
