by 
Anonymous
ANSWERS: 2
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Exercise price at which the owner of a call option can purchase the underlying stock or the owner of a put option can sell the underlying stock. The strike price is set by the exchange.
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To get to the answer for your Q, I think I have to go about this in a sort of “roundabout way” – by “coming in the back door”. To exercise an option means you sort-of trading in the option contract for the actual stock. When you bought the option contract, you bought the right but not the obligation, to buy that stock on or before a specific date* at or near a specified price, known as the "Strike Price"**. *specific date: commonly known or referred to as "expiration Friday". This is the 3rd Friday of each and every month. **Strike Price: for Calls: the price at which the stock can be bought. for Puts: the price at which the stock can be sold. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! Sources: My wonderful family! My wonderful coaches and mentors! TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of! Trading stocks and options more than 2 years. "THE University of Hard Knocks"
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