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Strike price

Index Strike price

In finance, the strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity. [1]

13 relations: Binary option, Call option, Derivative (finance), Finance, Indicator function, Intrinsic value (finance), Moneyness, Option (finance), Option screener, Option time value, Put option, Spot contract, Underlying.

Binary option

A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all.

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Call option

A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option.

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Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity.

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Finance

Finance is a field that is concerned with the allocation (investment) of assets and liabilities (known as elements of the balance statement) over space and time, often under conditions of risk or uncertainty.

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Indicator function

In mathematics, an indicator function or a characteristic function is a function defined on a set X that indicates membership of an element in a subset A of X, having the value 1 for all elements of A and the value 0 for all elements of X not in A. It is usually denoted by a symbol 1 or I, sometimes in boldface or blackboard boldface, with a subscript specifying the subset.

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Intrinsic value (finance)

In finance, intrinsic value refers to the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.

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Moneyness

In finance, moneyness is the relative position of the current price (or future price) of an underlying asset (e.g., a stock) with respect to the strike price of a derivative, most commonly a call option or a put option.

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Option (finance)

In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on a specified date, depending on the form of the option.

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Option screener

An option screener is a tool that evaluates options based on criteria and generates a list of potential trading ideas.

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Option time value

In finance, the time value (TV) (extrinsic or instrumental value) of an option is the premium a rational investor would pay over its current exercise value (intrinsic value), based on the probability it will increase in value before expiry.

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Put option

In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

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Spot contract

In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date.

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Underlying

In finance, the underlying of a derivative is an asset, basket of assets, index, or even another derivative, such that the cash flows of the (former) derivative depend on the value of this underlying.

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Exercise price, Strike (finance), Strike (options), Strike Price, Striking price.

References

[1] https://en.wikipedia.org/wiki/Strike_price

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