In
finance, the
strike price (or
exercise price) of an
option is the fixed price at which the owner of the option can buy (in the case of a
call), or sell (in the case of a
put), the underlying security or commodity. The strike price may be set by reference to the
spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium.