Exercise price

The exercise price simply refers to the price at which an action is taken price.

For instance, if you have a call option or perhaps a put option in place, then there will be a given price at which that instruction is carried out (called "exercised").

So the exercise price is simply the price at which that option is exercised.

Related Articles

Intestate
Cooperative
LIBOR
Boiler Plate
Gold option

More Financial Words and Vocabulary Explained