What is the meaning of Exercise price?

Exercise price is an option's exercise price, also called the strike price, is the price at which you can buy or sell the stock or commodity that underlies that option. While the exercise price is set by the exchange on which the option trades and remains constant for the life of the option, the market value of the underlying investment rises and falls continuously during the period in response to market demand.

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APABarry Goldsmith. (2010). exercise price. Retrieved September 25, 2026, from http://smartdefine.org/exercise_price/definitions/1153412
ChicagoBarry Goldsmith. 2010. "exercise price" http://smartdefine.org/exercise_price/definitions/1153412 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, exercise price, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/exercise_price/definitions/1153412>.
MLABarry Goldsmith. "exercise price" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/exercise_price/definitions/1153412>