What "strike price" means in finance

A strike price, also known as an exercise price, is the price at which an underlying asset can be bought or sold by the owner of an option. It is a predetermined price at which the option holder can buy or sell the underlying asset. For call options, the strike price is the price at which the holder can buy the underlying asset, while for put options, it is the price at which the holder can sell the underlying asset. The strike price is set at the time of the option contract and is determined based on the current market price of the underlying asset.