Question by a Trader: Joe I am new to options and I'm confused about some of the terminology. What exactly do they mean by "Strike Price?"
The Strike Price is the price at which an option can be exercised, and refers to the price of the option's underlying asset. In a call option, the strike price is the price at which the option holder can purchase the underlying asset. For a put option, the strike price is the price at which the option holder can sell the underlying asset.
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