Question

What is the strike price in an options contract?

a.

The price at which the underlying asset is currently traded.

b.

The price specified at the time the parties enter into the option.

c.

The price paid by the buyer to the seller.

d.

The market price of the option.

Posted under IC 89 Management Accounting

Answer: (b).The price specified at the time the parties enter into the option. Explanation:The strike price is the price at which the sale takes place and is specified at the time the parties enter into the option contract.

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Q. What is the strike price in an options contract?
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