The fixed price in an option contract at which the owner can buy or sell the underlying asset is called the option's:
A) opening price.
B) intrinsic value.
C) strike price.
D) market price.
E) time valuE.

Question

Quizplus · Accepted Answer

The strike price in an option contract is the fixed price at which the owner has the right to buy or sell the underlying asset. It is also known as exercise price. It is predetermined at the time of the option contract and remains fixed throughout the life of the contract. The strike price plays a crucial role in determining the profitability of the option position.

The Fixed Price in an Option Contract at Which the Owner