Exercise price in the world of listed options
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mord
Apprentice
Joined: 28 Sep 2006
Posts: 4
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 Posted: 07/24/08 - 04:10 Post subject: |
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| I have recently been looking to start with investments. I have accumulated fair amount of assets and I have looking into the most efficient way to invest in a market. I would like to know one thing. What is the exercise price in the world of listed options? Any info will do. It will really mean a lot to me. |
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ferrel
Apprentice
Joined: 08 Feb 2006
Posts: 4
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| Posted: 08/23/08 - 01:07 Post subject: |
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| The most notable options are American and European-style options. In any case exercise price of the options you have is related to the price that is currently actual, which is the one formed when exercise price is added to the intrinsic value. While the latter signifies the potential earning, the exercise price is, simply put, a price at which an option has to be sold or bought. For European-style, the options can be exercised only upon their maturity, while American options are more flexible and can be exercised at different dates. Best of luck. |
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