Price of an option allowing call or put. The buyer must pay this price to the option writer in a call option. The writer of the option must pay this price to the options holder in a put option. Known also as strike price.

More On This Topic

Link to This Definition
Did you find this definition of EXERCISE PRICE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary