Strike expense in MCW

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Aug 6th, 2022
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How to strike expense in MCW

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The strike price, also known as the exercise price, is the predetermined price at which the owner of an option can either buy (for a call option) or sell (for a put option) the underlying asset.
In options trading, the strike price, also known as the exercise price, is a predetermined price at which the holder of an option has the right, but not the obligation, to buy or sell the underlying asset. This asset could be a stock, commodity, index, or currency, depending on the type of option.
The basics: What is the strike price? For call options, the strike price is the price at which an underlying stock can be bought. For put options, the strike price is the price at which shares can be sold.
Options are listed with several strike prices both above and below the current market value. Say that a stock is trading at $100 per share. The $110-strike call option would give the holder the right to buy the stock at $110 on or before the date when the contract expires.
A call option is a contract that gives the owner the option, but not the requirement, to buy a specific underlying stock at a predetermined price (known as the strike price) within a certain time period (or expiration). For this option to buy the stock, the call buyer pays a premium per share to the call seller.
The strike 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 market price of the underlying instrument at that time.
The strike price is the predetermined price at which you buy (in the case of a call) or you sell (in the case of a put) an underlying futures contract when the option is exercised.
When the stock price equals the strike price, the option contract has zero intrinsic value and is at the money. Therefore, there is really no reason to exercise the contract when it can be bought in the market for the same price. The option contract is not exercised and expires worthless.

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