strike price
(finance) on a financial derivative, the price at which the final transaction occurs. for example, the strike price of a call option is the price at which the owner of the option may buy the underlying item. if a call option is for 100 bbls of wti crude oil at a strike price of $85.75/bbl, and the spot price is $86.50, then the option is worth (86.50 – 85.75) x 100 bbls = $75.
a put option is worthless if the strike price is lower than the spot price by the time it expires.
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