Strike price

The exercise price (also base price or strike price, Eng. Strike price ) is an important component of options and other derivative financial instruments. It refers to the price at which you can buy the underlying asset at the exercise date ( expiration date, date) ( ver).

Example

You buy an option that gives to buy 2009 100.000 barrels of oil to a value of 43 dollars per barrel on May 1 (that is, a call option ). In this case, the exercise price is $ 43. Has the date the oil has a price of less than $ 43 per barrel, then the option is worthless (English out of the money ).