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LSDefine

Simple English definitions for legal terms

exercise price

Read a random definition: Administrative Procedure Act (APA)

A quick definition of exercise price:

Exercise price is the price at which an option can be bought or sold. It is also known as the strike price. When an investor exercises an option, they are buying or selling the underlying asset at the exercise price. For example, if an investor has a call option with an exercise price of $50 and the underlying stock is currently trading at $60, the investor can exercise the option and buy the stock at $50, making a profit of $10 per share.

A more thorough explanation:

The exercise price, also known as the strike price, is the price at which an option can be exercised. It is the price at which the owner of an option can buy or sell the underlying asset.

For example, let's say you own a call option on XYZ stock with an exercise price of $50. This means that you have the right to buy XYZ stock at $50 per share. If the current market price of XYZ stock is $60, you can exercise your option and buy the stock at the exercise price of $50, making a profit of $10 per share.

Similarly, if you own a put option on XYZ stock with an exercise price of $50, you have the right to sell XYZ stock at $50 per share. If the current market price of XYZ stock is $40, you can exercise your option and sell the stock at the exercise price of $50, making a profit of $10 per share.

The exercise price is an important factor in determining the value of an option. The closer the exercise price is to the current market price of the underlying asset, the more valuable the option is.

exercise of judgment | exercise value

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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