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What does strike mean?
- Authors
- Name
- Benton Li
Strike (K) is the exercise price/rate specified in an option contract.
For example, Chippy bought an options contract offered by Limacon
| Asset | Nuts |
|---|---|
| Amount | 100 counts |
| Strike | $1 |
| Maturity | Sep 12, 2023 |
| Purchase date | Aug 12, 2023 |
| Type | European Call |
On Sep 12, 2023, she exercises her option. The amount she pays is $1 x 100 = $100. And she gets all deez 100 nuts.