Timeline for Is the strike price on the day when option contract is written equal to the price of the asset?
Current License: CC BY-SA 4.0
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Jan 31, 2022 at 17:18 | comment | added | Bob Baerker | The strike price of the contract represents the price at which you are agreeing to buy or sell the underlying. It is unaffected by other pricing variables except when it is adjusted due to a corporate action (split, special dividend, etc.). I suggest that you do some googling or read an option book because this is ultra basic terminology. | |
Jan 31, 2022 at 16:15 | comment | added | Sasha1001 | So you are saying that the strike price does not simply equal to the price of security at the time the contract is issued, but will also depend on the exercise time stated in the contract? @Bob Baerker | |
Jan 30, 2022 at 23:57 | history | answered | Bob Baerker | CC BY-SA 4.0 |