Question

The amount of money per share that will be received when a put option on stock is exercised is called the ________ price. A) market B) stock C) strike D) future E) obligated

Answer 1

The correct answer is letter "C": strike.

Step-by-step explanation:

The strike price is the price at which a derivative is exercisable and corresponds to the price of the underlying asset of the derivatives. In a call option, the strike price is the price at which the option holder can purchase the underlying security. For a put option, the strike price is the price at which the option holder can sell the underlying security.