What is a strike price?

If you’re interested in buying or selling options, you’ll need to understand strike prices. This explainer will help. Learn more in the MoneySense Glossary.

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Example: “After Mohammed’s shares in the company rose from $80 to $100, he bought a put option with an $80 strike price, giving him the option to sell at $80 and protect his gain should the price decline.”

Read more on strike prices:

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