The strike price is which of the following?
A)the price for immediate delivery of a financial asset
B)the price agreed upon today for delivery in the future of a futures contract
C)the price agreed upon today for a buyer to have the right to purchase the financial asset in a call option before the expiration date
D)the same as the options premium

Question

Quizplus · Accepted Answer

The strike price is the price at which the buyer of a call option has the right to purchase the underlying asset before the contract's expiration date. It is not the price for immediate delivery of an asset nor is it the price agreed upon for delivery of a futures contract. The options premium is the price paid for the option itself and is separate from the strike price.

The Strike Price Is Which of the Following