In the option markets,the price specified in the contract at which the buyer of the option can buy or sell the specified commodity or financial instrument is called the:
A) call price.
B) exercise price.
C) settlement price.
D) spot price.

Question

Quizplus · Accepted Answer

The price specified in the option contract at which the buyer of the option can buy or sell the underlying commodity or financial instrument is called the exercise price or strike price. This is the price at which the option can be exercised, hence the name. The other options listed are not correct definitions for this term.

In the Option Markets,the Price Specified in the Contract at Which