Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? strike price The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier. also called exercise price. see also aggregate exercise price, assignment, at the money, in the money, close to the money, out of the money, Black-Scholes Option Pricing Model, break-even point, butterfly spread, bear spread, combination, diagonal spread, intervals, intrinsic value, lookback option, perpendicular spread, price, roll down, roll up, variable ratio write, vertical spread. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.