In an options contract, another name for the strike price is the
A)market price.
B)exercise price.
C)equilibrium price.
D)fixed price.

Question

Quizplus · Accepted Answer

The strike price is the price at which the underlying asset can be bought or sold, depending on the type of option contract. It is also known as the exercise price because it is the price at which the option buyer has the right to exercise their option. The other options listed, such as market price and equilibrium price, refer to different concepts related to pricing in economics and finance, but are not specifically related to options contracts.

In an Options Contract, Another Name for the Strike Price