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Derivatives

Strike Price

The pre-agreed price at which an option can be exercised.

In depth

For a call, strike is the buy price; for a put, strike is the sell price. "In-the-money" (ITM): strike is favorable to current price. "Out-of-the-money" (OTM): strike is unfavorable. "At-the-money" (ATM): strike near current price.

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