Exercise Price definition: Copy, customize, and use instantly
Introduction
The term "Exercise Price" refers to the fixed price at which an option holder can purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset upon exercising the option. It is essential for defining the financial terms of an option agreement and establishing the cost or value of executing the option.
Below are various examples of how "Exercise Price" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Exercise Price" as a predetermined price for options
This definition ties "Exercise Price" to a predetermined price agreed upon in the option contract.
"Exercise Price" means the fixed price specified in the option agreement at which the option holder may buy or sell the underlying asset upon exercising the option.
Definition of "Exercise Price" as the strike price of options
This definition connects "Exercise Price" to the term "strike price" commonly used in financial markets.
"Exercise Price" refers to the strike price at which the holder of the option may purchase or sell the underlying asset in accordance with the terms of the option contract.
Definition of "Exercise Price" as a fixed price for equity options
This definition links "Exercise Price" to equity-based options, such as stock options.
"Exercise Price" means the price per share that an option holder must pay to acquire the shares of stock specified in the option agreement.
Definition of "Exercise Price" as a price determined at issuance
This definition applies "Exercise Price" to the price established at the time of issuing the option.
"Exercise Price" refers to the price determined at the issuance of the option, which remains fixed throughout the option term unless otherwise specified.
Definition of "Exercise Price" as a key term in derivative contracts
This definition ties "Exercise Price" to its role in derivative agreements.
"Exercise Price" means the specified price at which the holder of a derivative contract, such as an option, may exercise their rights to buy or sell the underlying asset.
Definition of "Exercise Price" as the agreed-upon transaction price
This definition ties "Exercise Price" to the agreed price for executing the option transaction.
"Exercise Price" means the agreed-upon price at which the option holder can execute the transaction to buy or sell the underlying asset, as specified in the option contract.
Definition of "Exercise Price" as the threshold for profit or loss
This definition connects "Exercise Price" to its role as the threshold for determining profitability.
"Exercise Price" refers to the price that determines whether exercising the option results in a profit, loss, or breakeven outcome for the option holder.
Definition of "Exercise Price" as a benchmark for valuation
This definition links "Exercise Price" to its use as a benchmark for valuing the underlying asset.
"Exercise Price" means the price that serves as a benchmark for assessing the market value of the underlying asset in relation to the option.
Definition of "Exercise Price" as the fixed execution price
This definition applies "Exercise Price" to the fixed execution price in financial contracts.
"Exercise Price" refers to the fixed price at which the holder of the option is entitled to execute the rights granted under the agreement.
Definition of "Exercise Price" as the cost of option execution
This definition ties "Exercise Price" to the cost incurred by the holder to exercise the option.
"Exercise Price" means the cost that the option holder must pay to exercise their right to buy or sell the underlying asset, as detailed in the contract.
Definition of "Exercise Price" as the predetermined equity price
This definition connects "Exercise Price" to its role in equity-based options for shares.
"Exercise Price" refers to the predetermined price at which shares of stock can be purchased or sold when the option is exercised.
Definition of "Exercise Price" as the locked-in price
This definition links "Exercise Price" to its function as a locked-in price for the underlying asset.
"Exercise Price" means the locked-in price established in the option agreement, enabling the option holder to execute the transaction regardless of market fluctuations.
Definition of "Exercise Price" as the financial commitment price
This definition applies "Exercise Price" to the financial commitment required to exercise the option.
"Exercise Price" refers to the financial commitment the option holder must make to exercise the rights conferred by the option contract.
Definition of "Exercise Price" as the contractual settlement price
This definition ties "Exercise Price" to its use as the settlement price for option execution.
"Exercise Price" means the price specified in the option contract that serves as the settlement value when the holder exercises the option.
Definition of "Exercise Price" as the strike point for rights execution
This definition connects "Exercise Price" to its function as the strike point for executing the option holder’s rights.
"Exercise Price" refers to the price point at which the option holder may execute their contractual rights to buy or sell the underlying asset.
Definition of "Exercise Price" as the option's exercise threshold
This definition ties "Exercise Price" to the threshold price required to execute the option.
"Exercise Price" means the threshold price specified in the option contract that must be met or exceeded for the holder to exercise their rights.
Definition of "Exercise Price" as the fixed financial obligation
This definition connects "Exercise Price" to the fixed obligation incurred upon option exercise.
"Exercise Price" refers to the fixed financial obligation that the option holder agrees to pay or receive upon exercising the option, as outlined in the agreement.
Definition of "Exercise Price" as the set rate for underlying assets
This definition links "Exercise Price" to its role as the predetermined rate for trading the underlying asset.
"Exercise Price" means the set rate at which the underlying asset may be traded by the option holder upon execution of the option.
Definition of "Exercise Price" as the price for settlement rights
This definition applies "Exercise Price" to the price used to settle the option contract.
"Exercise Price" refers to the price at which the holder may settle the option and acquire or dispose of the underlying asset, as specified in the terms.
Definition of "Exercise Price" as the specified strike amount
This definition ties "Exercise Price" to its designation as the strike amount in the option.
"Exercise Price" means the specified amount stated as the strike price in the option contract, determining the cost of execution.
Definition of "Exercise Price" as the agreed-upon contract rate
This definition connects "Exercise Price" to its function as the agreed rate in the option terms.
"Exercise Price" refers to the contractually agreed rate at which the option holder may execute their rights to buy or sell the underlying asset.
Definition of "Exercise Price" as the investor’s price point
This definition links "Exercise Price" to the price point relevant to the option holder’s decision.
"Exercise Price" means the price point specified in the option agreement that determines the cost of exercising the option for the investor.
Definition of "Exercise Price" as the benchmark for market comparison
This definition applies "Exercise Price" to its use as a benchmark against current market prices.
"Exercise Price" refers to the benchmark price used to compare the market value of the underlying asset to the option’s terms during execution.
Definition of "Exercise Price" as the valuation trigger
This definition ties "Exercise Price" to its role as a trigger for assessing the option's value.
"Exercise Price" means the valuation trigger specified in the option contract that determines the potential profit or cost of execution.
Definition of "Exercise Price" as the locked execution value
This definition connects "Exercise Price" to its role as a locked-in execution value for the underlying asset.
"Exercise Price" refers to the locked execution value defined in the option terms, ensuring the holder can execute the option at a predetermined cost.
Definition of "Exercise Price" as the activation price
This definition ties "Exercise Price" to the price that activates the option holder's rights.
"Exercise Price" means the activation price at which the option holder gains the right to execute the transaction involving the underlying asset.
Definition of "Exercise Price" as the purchase or sale price
This definition connects "Exercise Price" to the price paid for purchasing or selling the underlying asset.
"Exercise Price" refers to the specific price the option holder agrees to pay (for a call option) or receive (for a put option) upon exercising the option.
Definition of "Exercise Price" as the benchmark for profitability
This definition links "Exercise Price" to its role in determining the profitability of exercising the option.
"Exercise Price" means the benchmark price used to evaluate whether exercising the option results in financial gain or loss for the holder.
Definition of "Exercise Price" as the price locked at issuance
This definition applies "Exercise Price" to the fixed value established when the option is issued.
"Exercise Price" refers to the value locked at the time of the option's issuance, remaining constant throughout the option’s term unless otherwise stated.
Definition of "Exercise Price" as the contractual access point
This definition ties "Exercise Price" to the contractual access point for exercising rights.
"Exercise Price" means the agreed access point at which the option holder may execute their rights under the terms of the contract.
Definition of "Exercise Price" as the settlement mechanism
This definition connects "Exercise Price" to its role as the mechanism for settling the option.
"Exercise Price" refers to the mechanism by which the option is settled, determining the financial exchange required to finalize the transaction.
Definition of "Exercise Price" as the financial anchor
This definition links "Exercise Price" to its role as the anchor for the option’s financial terms.
"Exercise Price" means the financial anchor that determines the starting point for calculating the potential gains or losses from the option.
Definition of "Exercise Price" as the underlying trade rate
This definition applies "Exercise Price" to the specified rate for trading the underlying asset.
"Exercise Price" refers to the rate defined in the option agreement for trading the underlying asset when the holder exercises their rights.
Definition of "Exercise Price" as the fixed financial benchmark
This definition ties "Exercise Price" to its role as a fixed benchmark for financial execution.
"Exercise Price" means the fixed benchmark price agreed upon in the contract that the holder must pay or receive to exercise the option.
Definition of "Exercise Price" as the predefined cost of execution
This definition connects "Exercise Price" to the predefined cost associated with executing the option.
"Exercise Price" refers to the predefined cost specified in the option terms that the holder incurs to finalize the transaction involving the underlying asset.
Definition of "Exercise Price" as the threshold for option execution
This definition ties "Exercise Price" to the price threshold required to activate the option holder’s rights.
"Exercise Price" means the threshold price specified in the option agreement that the holder must meet to execute their rights under the contract.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.