Strike price = exercise price
What is a strike price?
Where have you heard about strike prices?
What you need to know about strike prices.
When working out the profit in an unexpired option, it's essential to compare the strike price against the current market price to work out if an option is in or out of the money. In other words, the strike price can help you decide whether to exercise your option or not.
For example: If a put option strike price is 200 and the market price is 190, then exercising of this option is worthless (simply subtract the market price from the strike price). But if the strike price is 200 and the market price is 220, then the put option is 'in-the market', and worthy of exercising.
Find out more about strike prices.
See how strike prices are a key part of options trading.