Q569
Pre-specified price at which underlying asset is bought and sold is called as
A.
maturity price
B.
strike price
C.
exercise price
D.
both b and c
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Pre-specified price at which underlying asset is bought and sold is called as strike price or exercise price. the strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.