exercise price

exercise price definition - finance
The price at which the underlying security for an options contract can be purchased. If the exercise price of an option is $35, then the stock can be purchased at $35 a share, irrespective of the current market price. Also called strike price.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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