Exercise Price – Forex Economic Dictionary

Forex Economic Dictionary
Economic Dictionary

Exercise Pricethis is price at which the buyer of the option can exercise his right to buy or sell the underlying asset. It is defined at the same time when the option contract is formed. If you want to profit from an option the key is the exercise price. The thing that is most important and valuable is the difference between the fixed exercise price and the market price at the time the option is realized.

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