The price specified in an option contract at which the holder can buy or sell the underlying asset is called the ________.
A) premium
B) strike price
C) exercise price
D) both B and C of the above.

Question

Quizplus · Accepted Answer

The strike price and exercise price are the same thing and refer to the specific price at which the underlying asset can be bought or sold. The premium is the price paid by the holder for the option contract itself. Therefore, the correct answer is D, which includes both B (strike price) and C (exercise price).

The Price Specified in an Option Contract at Which the Holder