Option Price definition: Copy, customize, and use instantly
Introduction
The term "Option Price" refers to the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset. It is crucial in determining the profitability of the option and plays a significant role in trading strategies. The Option Price can be influenced by factors like the strike price, volatility, and the time to expiration.
Below are various examples of how "Option Price" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Option Price" in relation to call options
This definition ties "Option Price" to the price of a call option, specifying the amount to be paid to buy the underlying asset.
"Option Price" means the price at which the holder of a call option can purchase the underlying asset, typically determined at the time the option contract is executed.
Definition of "Option Price" in relation to put options
This definition connects "Option Price" to the price of a put option, specifying the amount to be received when selling the underlying asset.
"Option Price" refers to the price at which the holder of a put option can sell the underlying asset, established at the initiation of the option agreement.
Definition of "Option Price" as the exercise price
This definition links "Option Price" to the exercise price (or strike price) of the option, which is the predetermined price at which the option can be exercised.
"Option Price" means the exercise or strike price specified in the option contract, representing the price at which the holder can buy or sell the underlying asset.
Definition of "Option Price" as a fixed amount
This definition ties "Option Price" to a fixed price set at the time the option is purchased, which does not change during the life of the option.
"Option Price" refers to the fixed price specified in the option agreement, which remains constant throughout the option’s life, regardless of market conditions.
Definition of "Option Price" based on market conditions
This definition connects "Option Price" to market conditions that may affect the price at which the option holder can buy or sell the underlying asset.
"Option Price" means the price at which the option holder can exercise the option, which may fluctuate depending on the current market value of the underlying asset.
Definition of "Option Price" as the price of a financial option
This definition links "Option Price" to the price of a financial instrument that gives the holder the right to buy or sell an underlying asset.
"Option Price" refers to the price of a financial option, which is the cost incurred by the buyer to acquire the right to purchase or sell the underlying asset at a specified strike price.
Definition of "Option Price" as an agreed-upon amount
This definition ties "Option Price" to an amount agreed upon by the buyer and seller of the option at the time the contract is executed.
"Option Price" means the price mutually agreed upon by the buyer and seller in an option contract, which determines the cost of exercising the option.
Definition of "Option Price" in terms of option premiums
This definition connects "Option Price" to the premium, which is the amount paid by the option buyer to the seller for the right to exercise the option.
"Option Price" refers to the premium paid by the buyer to the seller in exchange for the right to exercise the option to buy or sell the underlying asset.
Definition of "Option Price" for stock options
This definition links "Option Price" to the price set in stock options, which allows the option holder to buy or sell shares at a specific price.
"Option Price" means the price at which a stock option holder can exercise the option, either purchasing or selling the underlying shares at the specified strike price.
Definition of "Option Price" as the exercise price in a convertible bond
This definition connects "Option Price" to the exercise price in a convertible bond, where the bondholder has the option to convert the bond into shares.
"Option Price" refers to the exercise price at which a bondholder may convert a convertible bond into shares of the underlying stock, typically predetermined at the issuance of the bond.
Definition of "Option Price" as an option to buy or sell
This definition ties "Option Price" to the price at which the holder of an option can either buy or sell the underlying asset, depending on the type of option.
"Option Price" means the price at which the holder of an option may choose to buy or sell the underlying asset, as specified in the option agreement.
Definition of "Option Price" for employee stock options
This definition links "Option Price" to the price at which employees can exercise their stock options to purchase company shares.
"Option Price" refers to the price at which an employee may exercise stock options, purchasing company shares at a predetermined price set by the option grant.
Definition of "Option Price" as a formula-based price
This definition connects "Option Price" to a price determined using a formula, such as the Black-Scholes model, which factors in various market variables.
"Option Price" means the price of an option determined using an option pricing model, such as the Black-Scholes model, which incorporates factors like volatility, time to expiration, and the underlying asset’s price.
Definition of "Option Price" as an adjustment in response to stock splits
This definition ties "Option Price" to adjustments made to the option price due to corporate events like stock splits.
"Option Price" refers to the price of the option that may be adjusted in the event of a stock split, ensuring the holder’s rights are preserved post-split.
Definition of "Option Price" for options on futures contracts
This definition connects "Option Price" to the price at which the holder of an option on a futures contract can buy or sell the underlying futures contract.
"Option Price" means the price at which the holder of an option on a futures contract can exercise the option, buying or selling the underlying futures contract at the specified strike price.
Definition of "Option Price" as the market price of an option
This definition links "Option Price" to the market price, which is the price at which an option is trading in the open market.
"Option Price" refers to the current market price of an option, which reflects supply and demand and can fluctuate based on market conditions.
Definition of "Option Price" as a price set in an option contract
This definition ties "Option Price" to the predetermined price established in the option contract.
"Option Price" means the fixed price set within the option contract, which is the amount at which the option can be exercised.
Definition of "Option Price" as a price set in a bond option
This definition connects "Option Price" to the price set for bond options, allowing the holder to buy or sell bonds at a specified price.
"Option Price" refers to the price at which a bond option holder can exercise the option to buy or sell the underlying bonds, set at the time the option is issued.
Definition of "Option Price" as a discount or premium
This definition links "Option Price" to a price that may reflect a discount or premium compared to the underlying asset’s current market value.
"Option Price" means the price at which an option is bought or sold, which may be at a discount or premium compared to the current market price of the underlying asset.
Definition of "Option Price" as an agreed strike price in a forward contract
This definition ties "Option Price" to the agreed strike price in the context of forward contracts.
"Option Price" refers to the strike price agreed upon in a forward contract, which determines the price at which the option holder can execute the transaction.
Definition of "Option Price" in the context of exotic options
This definition connects "Option Price" to exotic options, which are non-standard options with more complex terms.
"Option Price" means the price at which an exotic option holder can exercise the option, typically determined by the unique terms of the exotic option contract.
Definition of "Option Price" as a basis for hedging strategies
This definition ties "Option Price" to the use of options in hedging strategies, where it serves as a key component in risk management.
"Option Price" refers to the price at which an option is exercised, used as part of a hedging strategy to manage financial risk in relation to an underlying asset.
Definition of "Option Price" as the price in a swaption
This definition links "Option Price" to the price in a swaption, which is an option to enter into an interest rate swap.
"Option Price" means the price at which a swaption holder can exercise the option to enter into an interest rate swap at a predetermined rate.
Definition of "Option Price" for bond options
This definition connects "Option Price" to bond options, allowing the holder to buy or sell bonds at a specified price.
"Option Price" refers to the price at which a bond option holder can exercise the option to purchase or sell bonds at a predetermined price.
Definition of "Option Price" as a defined amount in a convertible security
This definition ties "Option Price" to the price at which a holder of a convertible security can convert it into shares.
"Option Price" means the price at which the holder of a convertible security can convert it into the underlying shares of stock.
Definition of "Option Price" for options on real estate
This definition connects "Option Price" to the price at which the holder of an option can buy or sell real estate.
"Option Price" refers to the price at which an option holder can exercise their right to buy or sell real estate at a specified price.
Definition of "Option Price" as the purchase price in an employee option plan
This definition links "Option Price" to the price at which employees can purchase stock in their employer’s option plan.
"Option Price" means the price at which employees can purchase shares of stock under an employee stock option plan, typically below the market price.
Definition of "Option Price" for American-style options
This definition connects "Option Price" to American-style options, which can be exercised at any time before expiration.
"Option Price" refers to the price at which an American-style option can be exercised, allowing the option holder to buy or sell the underlying asset at the specified price before the option expires.
Definition of "Option Price" in the context of digital options
This definition ties "Option Price" to the price in digital options, where the option holder receives a fixed payout or nothing at all based on the outcome of the option's expiration.
"Option Price" means the price at which a digital option holder can exercise the option, where the payout is predetermined based on whether the option ends in the money or out of the money.
Definition of "Option Price" as a price subject to periodic adjustments
This definition links "Option Price" to an option that allows periodic adjustments, such as in the case of an option based on an underlying asset that changes over time.
"Option Price" refers to the price of an option that may be adjusted periodically in response to specific changes in the value of the underlying asset, as outlined in the option contract.
Definition of "Option Price" as the price in a warrant agreement
This definition connects "Option Price" to the price in a warrant agreement, which gives the holder the right to buy the underlying securities at a fixed price before expiration.
"Option Price" means the price at which the holder of a warrant may exercise the right to buy the underlying securities, typically determined at the time the warrant is issued.
Definition of "Option Price" as a capped price in options with a limit
This definition ties "Option Price" to options that have a cap or limit on the price at which the option can be exercised, often seen in structured financial products.
"Option Price" refers to the price at which an option can be exercised, which is capped at a certain value to limit potential losses or gains for the holder.
Definition of "Option Price" as the value in a call option with a premium
This definition connects "Option Price" to the value in a call option, where the price reflects the premium the buyer pays for the right to purchase the underlying asset.
"Option Price" means the premium paid by the buyer of a call option to acquire the right to buy the underlying asset at a specified price.
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.