# What does "Strike Price" mean?

## **(C) Strike Price**

<div align="left"><figure><img src="/files/77ZDRdikesu5quEXz35i" alt="" width="109"><figcaption></figcaption></figure></div>

The strike price is the predetermined price at which an options contract can be exercised.

In the context of call options, it's the price at which the option holder can buy the underlying asset. For put options, it's the price at which the holder can sell the asset.

**For example:**\
\&#xNAN;*If you hold a call option with a strike price of $50 for a stock, you have the right to buy that stock at $50, regardless of its current market price.*

The strike price is a crucial factor in determining whether an option is "in the money" (profitable to exercise), "at the money" (current market price equals the strike price), or "out of the money" (not profitable to exercise).


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