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Basic Question 2 of 18

The specified price at which the underlying asset can be bought or sold with an option contract is ______.

A. the premium price
B. the strike price
C. the optimum price
D. the selling price

User Contributed Comments 2

User Comment
Tomm Also known as the exercise price.
MattNYC Striking price is known as X as well, as denoted by the CFA in its formulas.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

determine the value at expiration and profit from a long or a short position in a call or put option

contrast forward commitments with contingent claims

CFA® 2024 Level I Curriculum, Volume 5, Module 2.