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Define: Strike Price

Strike Price is the price at which the underlying stock is to be transacted at when an option is exercised. Hence, it is also known as the "Exercise Price".

There is not one but many strike prices available for each expiration month and each strike price serves a different investment or trading need. The number of strike prices and the interval between the strike prices may be different for different stocks and varies based on the price of the stock.

Read the full tutorial on Strike Price.