exercise price

noun

1. stock exchange the price at which the holder of a traded option may exercise his right to buy (or sell) a security

Example Sentences

Occidental shares fell roughly 2.5% Thursday to trade below Berkshire’s exercise price at $56.54, but the shares have gained more than 80% this year as oil prices soared after Russia’s invasion of Ukraine.

From Washington Times

Occidental shares fell roughly 2.5% Thursday to trade below Berkshire’s exercise price at $56.54, but the shares have gained more than 80% this year as oil prices soared after Russia’s invasion of Ukraine.

From Seattle Times

When share prices rise above the exercise price, they can buy the stocks at discounted prices.

From Reuters

In addition to shares in the SPAC, the initial investors also receive a warrant to acquire shares in the merged company, typically at an exercise price of $11.50 per share, and sometimes a further right to acquire post-merger shares.

From Los Angeles Times

They also mean a total loss if the stock doesn’t exceed that exercise price.

From Slate