6 Important Factors That Influence the Strike Price of Stock Optionsby@sarathcp92
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6 Important Factors That Influence the Strike Price of Stock Options

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With an option, one has the right to buy or sell a security at a specified price on or before expiration. The strike price of an option is the price at which the option can be bought or sold when it is exercised. It is a key factor in determining the cost of a stock option. Traders should assess each of the factors that drive the drive the strike price in order to make an informed decision in making the right decision to exercise an option. The right to exercise your option at any time from when it was created up to the expiration of the contract.

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