Derivatives
Strike Price
Strike price is the predetermined price at which an option can be exercised. It determines whether an option is in-the-money or out-of-the-money.
Example
NIFTY 22000 CE has strike price of 22000.
Related terms
Call Option
A call option gives the buyer the right (not obligation) to buy the underlying asset at a predetermined price before expiry. Buyers profit when prices rise.
Put Option
A put option gives the buyer the right to sell the underlying asset at a predetermined price before expiry. Buyers profit when prices fall.