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Topic: Strike price

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European call option

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	Strike price - Wikipedia, the free encyclopedia
		The strike price, or exercise price, is a key variable in a derivatives contract between two parties.
		Where the contract requires delivery of the underlying instrument, the trade will be at the strike price, regardless of the spot price (market price) of the underlying at that time.
		Where settlement is financial, the difference between the strike price and the spot price will determine the value, or "Moneyness", of the contract.
	en.wikipedia.org /wiki/Strike_price (178 words)

	Option Strike Price
		The strike, or exercise, price of an option is the specified share price at which the shares of stock can be bought or sold by the buyer if he exercises the right to buy (in the case of a call) or sell (in the case of a put).
		A strike price is the actual numeric value of the option.
		Strike prices are determined when the underlying reaches a certain numeric value and trades consistently at or above that value.
	www.trader-soft.com /option-trading/option-basics/strike-price.html (120 words)

	CBOE - Dictionary
		Three striking prices are involved, with the lower two being utilized in one spread and the higher two in the opposite spread.
		The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option.
		The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier.
	www.cboe.com /LearnCenter/Glossary.asp (2958 words)

	strike price and Stock Trading at TradeStars + Stock Trading (Site not responding. Last check: 2007-11-07)
		We a U.S. Senate strike price subcommittee, former SEC Chairman Arthur Levitt testified that, I am concerned that some stock traders dont fully understand the strike price level of risk they are assuming.
		The NASDs release of July 29, 1999, describes a strike price NASD rule proposal that was approved by the SEC on July 10, 2000.
		Short has been restricted for strike price failure to meet a day trade margin call, more stringent rules apply than for general purpose stock traders, and price call, the call must be met by a deposit of funds within 5 business days.
	www.tradestars.com /content/strike-price.asp (338 words)

	CFTC Glossary (Site not responding. Last check: 2007-11-07)
		Spot Price: The price at which a physical commodity for immediate delivery is selling at a given time and place.
		The term spread is also used to refer to the difference between the price of a futures month and the price of another month of the same commodity.
		Strike Price (Exercise Price): The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.
	www.cftc.gov /opa/glossary/opaglossary_s.htm (1948 words)

	Adjusted Strike Price or Adjusted Exercise Price
		When any capital change affects the shares subject to a stock option, the strike price and the number of shares subject to option are adjusted to reflect the change.
		For example, if a stock is split 3 for 2 and the original strike price of an option is $60, the adjusted strike price is $40, and the option becomes an option on 150 shares of the split stock.
		Strike price adjustments are uncommon in interest rate and currency option markets.
	riskinstitute.ch /00010331.htm (80 words)

	Fool.com: Fool FAQ - Options
		Strike price - Every option has a strike price, which is the price of the underlying stock at which the call option owner has the right to buy the stock, and the put option owner has the right to sell the stock.
		Whenever the share price of the stock underlying a call is BELOW the strike price, or the price of the stock underlying a put is ABOVE the strike price, the option has only time value.
		The price of TUBE is going to have to reach 80 1/2 for you just to break even--actually a tad higher to cover the cost of the commission you had to pay to get the Calls.
	www.fool.com /FoolFAQ/foolfaq0055.htm (2566 words)

	The Window Strategy with Options
		The method of deriving the price ceiling (Figure 2) is the same as for determining the price floor except that you start off with the call strike price rather than the put strike price.
		When the futures price is equal to or less than the put strike price, the net price received is the same and is equal to the floor price.
		When the futures price is between the two strike prices, a loss is incurred on the put option and is equal to the put premium.
	trmep.tamu.edu /cg/overheads/oh2-18.html (1012 words)

	STRIKE-PRICE-OPTIONS.COM
		This is the price that the contract is made at, in other words when you exercise a call option you may buy the underlying stock at the strike price or when you exercise a put you may sell the underlying stock at the strike price.
		A call option is out of the money when the strike price is higher than the market price, In this situation you have the right to buy a stock at a price higher than the market price.
		The volatility of an option is a measure of the spread of the price movements of the underlying instrument.
	strike-price-options.com (655 words)

	Heating Oil Futures Prices - NYMEX
		Twenty strike prices in one-cent-per-gallon increments above and below the at-the-money strike price, and the next ten strike prices in five-cent increments above the highest and below the lowest existing strike prices for a total of at 61 strike prices.
		The at-the-money strike price is the nearest to the previous day’s close of the underlying futures contract.
		Strike price boundaries are adjusted according to the futures price movements.
	www.wtrg.com /daily/heatingoilprice.html (751 words)

	Nigeria: General strike against fuel price increases
		The strike, which began June 9 and is intended to last 21 days, was called by the Nigeria Labour Congress (NLC) as well as the Trades Union Congress (TUC) and the Congress of Free Trade Unions (CFTU).
		The fuel price increases are in response to pressure from the IMF and other creditors for Nigeria to lift all subsidies.
		Jonathan Musa, the chairman of the state chapter of NLC in Kaduna, has made clear that there should be no rallies or processions in the state during the general strike, claiming that this was necessary to prevent “mischief makers” using rallies for their own ends.
	www.wsws.org /articles/2004/jun2004/nige-j12.shtml (519 words)

	:: First Choice Futures :: FirstChoiceFutures.com, options, futures, trading, investments, stock, bonds, brokerage ... (Site not responding. Last check: 2007-11-07)
		This is the specific dollars and cents price at which the option gives you the right to buy a particular commodity in the case of a call or to sell the commodity in the case of a put.
		When you buy a call, you hope the market price of the commodity (when the option expires) will be above the option's strike price by an amount greater than the cost of the option, thereby causing the option to become profitable.
		The greater the price movement — provided it's in the direction you anticipated and provided it occurs during the life of the option — the larger the profit.
	www.firstchoicefutures.com /questions.html (3907 words)

	SRO Rulemaking: SR-Phlx-98-09
		Currently, Rule 1101A(a) establishes the strike price interval at $5, except: (i) where the strike price exceeds $500, the strike price interval may be $10; and (ii) where the strike price exceeds $1,000, the interval may be $20.
		The Exchange may also determine to list strike prices at wider intervals in "out-of-the money" or far term series, generally $25, except: (i) where the strike price exceeds $500, the interval may be $50; and (ii) where the strike price exceeds $1,000, the interval may be $100.
		The Rule establishes a strike price interval at $5, except: (i) where the strike price exceeds $500, the strike price interval may be $10; and (ii) where the strike price exceeds $1,000, the interval may be $20.
	www.sec.gov /rules/sro/ph9809f.htm (1320 words)

	strike price Definition
		The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier.
		The buyer's profit from exercising the option is the amount by which the strike price exceeds the spot price (in the case of a call), or the amount by which the spot price exceeds the strike price (in the case of a put).
		In general, the smaller the difference between spot and strike price, the higher the option premium.
	www.investorwords.com /4780/strike_price.html (323 words)

	FuturesBuzz.com - Options Information - Strike Price vs Futures Price (Site not responding. Last check: 2007-11-07)
		The most important influence on an option's price is the relationship between the underlying futures price and the option's strike price.
		Depending upon futures prices relative to a given strike price, an options contract is said to be at-the-money, in-the-money, or out-of-the-money.
		An options contract is at-the-money when the strike price is the closest to the price of the underlying futures contract.
	www.futuresbuzz.com /strikevsfutures.html (437 words)

	RMEY: Real Marketing Experience for You
		That means it can provide you with a price for your crop that is equal to the strike price less the basis at your local market.
		Of course, since prices have declined, premiums for that strike price will be higher than the one you originally paid.
		The target price for your hedge is strike price, less premium, less basis.
	www.rmey.com /rmey065v.htm (1644 words)

	strike price (Site not responding. Last check: 2007-11-07)
		A standard option is similar to a forward since it is also a contract for an exchange in the future, where the price to be paid is preset in the present.
		For options, this preset price is termed the strike price instead of the delivery price.
		Exercise price is another popular term for strike price.
	www.in-the-money.com /glossarynet/strike_p.htm (55 words)

	[No title] (Site not responding. Last check: 2007-11-07)
		Strike Price--the price at which the buyer may obtain a short futures position (put) or long futures position (call).
		Upon exercise, the trader is long Dec corn at a price of 220 Option seller must go short Dec corn at a price of 220 to offset the long position delivered to the option buyer.ól}¨#Example of Exercising a Put Option¡$$úýþ¨9Suppose a trader has a long 500 Jan put option.
		Upon exercise, the trader is short Jan soybeans at a price of 500.
	www.montana.edu:8181 /econ/buschena/ag-trading_lectures/Lecture3.ppt (2625 words)

	Strike Price (Site not responding. Last check: 2007-11-07)
		Intrinsic value is equal to the difference between the strike price of an option and price of the underlying stock.
		The strike price of the option grant for cash is 138.4 cents a share, which was arrived at by taking the weighted average of the strike price of the initial...
		The strike price is equal to the stock price on the date of grant.
	finance.za-news.com /new/Strike_Price.html (6055 words)

	Options and Strike Price explained
		They are sold all throughout the day and the price fluctuates throughout the day based on the movement of the stock.
		Intrinsic Value: This is basically the price of the option and is based on the amount of time left (which diminishes over time) and how far in or out of the money the option strike price is.
		If the stock price goes down a lot then often the liquidity of the option will go down, the bid and the ask spread may become larger and it may be hard to sell the option.
	www.swingtradingtips.com /options.html (862 words)

	Choosing the Strike Price (Site not responding. Last check: 2007-11-07)
		CallWriter views the selection of the strike price as an inextricable part of the trading decision.
		In covered call trading, the selection of the strike price is an important choice that affects returns and that even determines whether the trade is a go or no-go in the first place.
		In fact, a stock might be writable as a deeply ITM play but not otherwise, which indicates how integral the analysis of the different call strikes is to the trade decision itself.
	www.mrswing.com /artman/publish/printer_602.shtml (958 words)

	Strike price
		In the context of derivatives the strike price of an option is a key variable in a financial contract between two parties.
		a stock price, interest rate or inflation rate) has a value above (or below depending on the particular type of contract, but not both) the strike price.
		In the context of a call option, the payoff is where S is the final of the underlying, K is the strike and where
	www.ukpedia.com /s/strike-price.html (122 words)

	FASB: Hedging-General: The Strike Price for Determining When a Swap Contains Mirror-Image Call Provision
		The phrase strike price in paragraph 68(d)(1) should be read to mean the actual amount for which the debt instrument could be called.
		It is common to quote the call prices (strike prices) on debt as a percentage of par value.
		In contrast, the strike prices of options embedded in interest rate swaps are generally quoted as a rate or current yield (the current fixed-rate coupon on a non-callable/non-putable swap having zero fair value at inception).
	www.fasb.org /derivatives/issuee20.shtml (532 words)

	Welcome to the Financial Trading System
		In the previous two lessons you learnt how to back out the volatility implied from an option price and how to estimate the implied volatility from options with nearby strike prices holding all other contractual features constant.
		If you have just completed Calculating the Implied Volatility Smile lesson then enter the option's Strike Price to approximately equal IBM's current stock price less $5 (i.e., K - 5 in the previous lesson where K is the at-the-money strike price.
		Strike prices must be in intervals of 5 for IBM (i.e., 95, 100, 105, etc.,) which is why K will only approximately equal the current stock price.
	www.ftsnet.com /public/ftsmodhtm/ftsOpCalculator/ibm2.htm (719 words)

	Glossary: Strike price (Site not responding. Last check: 2007-11-07)
		(Also called the exercise price.) The price at which the holder of an option can purchase (in the case of a call) or sell (in the case of a put) the underlying stock from the option writer.
		If your broker calls you with an idea to buy an October 50 ABC Inc. call, it means the strike price is 50 per share.
		To make the trade profitable, the stock price should be higher than the combined price of the strike and the premium paid for the option.
	www.thestreet.com /tsc/basics/tscglossary/strikeprice.html (124 words)

	Guaranteed Personal Loan - Strike glossary , Strike price , Stripped bond , Stripped yield
		The strike glossary is converted to a dollar value by multiplying by the options contract multiple.
		The stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the
		Pricing efficiency, where the price of a security reflects all information, whether or not it is publicly available.
	www.guaranteed-personal-loan.co.uk /glossary271.html (321 words)

	BBC NEWS \| Africa \| Nigerian fuel strike takes hold
		The strike is one reason why world oil prices have reached a new record high.
		In a bid to take the steam out of the strike, President Olusegun Obasanjo has set up a task force to look at the effects of the fuel price rises, which includes the leader of Nigeria's trade union umbrella group, Adams Oshiomhole.
		But he added that the strike would only end if the recent 25% hike in petrol prices is reversed.
	news.bbc.co.uk /2/hi/africa/3731952.stm (609 words)

	Fuel price dropped, strike off
		Major oil marketers increased the pump price of fuel from 34 naira to 40 naira on October 1, sparking a row between the government and labour which threatened to launch a general strike on Thursday.
		Earlier a spokesperson for the 36 state governors told reporters that their intervention had led to the truce between labour and the government.
		But while the NLC president was calling off the strike, President Olusegun Obasanjo was making a national broadcast, dismissing the planned strike and accusing union leaders of a hidden agenda.
	www.news24.com /News24/Africa/News/0,,2-11-1447_1427618,00.html (474 words)

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