The ﬁxed price in an option contract at which the owner can buy or sell the underlying asset is called the option's _________________.

Question

Quizplus · Accepted Answer

The fixed price at which the owner of an option can buy or sell the underlying asset is known as the option's strike price. This is the price at which the option is exercised, and it is set when the option is initially bought or sold. The intrinsic value refers to the difference between the stock price and the strike price, while the time value is the difference between the option price and the intrinsic value. Therefore, the correct answer is C, Strike price.

The ﬁXed Price in an Option Contract at Which the Owner