What is a "strike price?"
A)the exchange rate that is used to buy a foreign currency today
B)the price that will be paid for goods in a forward contract
C)the exchange rate that will be used if a foreign currency option is executed
D)the difference between the wholesale rate and the retail rate for foreign currency exchange

Question

Quizplus · Accepted Answer

A strike price is the predetermined exchange rate that will be used if a foreign currency option is executed. This means that if the option is exercised, the exchange will occur at the strike price agreed upon in the option contract.

What Is a "Strike Price