- CFA Exams
- CFA Level I Exam
- Study Session 16. Derivatives
- Reading 48. Derivative Markets and Instruments
- Subject 4. Contingent Claims

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**CFA Practice Question**

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

B. the strike price

C. the optimum price

D. the selling price

A. the premium price

B. the strike price

C. the optimum price

D. the selling price

Correct Answer: B

The price of interest here is the price at which the deal will be struck.

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**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. |