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Exercise Price

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Exercise Price
The price at which an Option Holder has the right to buy or sell the Underlying Security is known as its Exercise price (or Strike Price).
    
If investors buy a call Option on a share at an Exercise price of 260p, he has the right to buy the Underlying share at 260p. If he buys a put Option on a share at an Exercise price of 260p, he has the right to sell the Underlying Security at 260p.
    
Exercise is an action by a stockholder taking advantage of a privilege offered by a company or other financial Institution. This includes warrants, options, and other exotic financial instruments.
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