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In [[finance]], the '''strike price''' (or '''exercise price''') of an [[option (finance)|option]] is the fixed price at which the owner of the option can buy (in the case of a [[call option|call]]), or sell (in the case of a [[put option|put]]), the underlying security or commodity.
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The strike price is a key variable in a [[derivative (finance)|derivatives]] contract between two parties. Where the contract requires delivery of the [[underlying]] instrument, the trade will be at the strike price, regardless of the [[spot price]] (market price) of the underlying instrument at that time.
 
For example, an IBM May 50 Call has a strike price of $50 a share. When the option is exercised, the owner of the option will buy 100 shares of IBM stock for $50 per share.
 
==Moneyness==
[[Moneyness]] is the value of a financial contract if the contract settlement is financial. More specifically, it is the difference between the strike price of the option and the current trading price of its underlying security.
 
In options trading, terms such as ''in-the-money'', ''at-the-money'' and ''out-of-the-money'' describe the moneyness of options.
 
* A [[call option]] is in-the-money if the strike price is below the market price of the underlying stock.
** A put option is in-the-money if the strike price is above the market price of the underlying stock.
* A call or put option is at-the-money if the stock price and the exercise price are the same (or close).
* A call option is out-of-the-money if the strike price is above the market price of the underlying stock.
** A put option is out-of-the-money if the strike price is below the market price of the underlying stock.
 
===Mathematical formula===
A [[call option]] has positive monetary value at expiration when the underlying has a spot price ('''S''') ''above'' the strike price ('''K'''). Since the option will not be exercised unless it is in-the-money, the payoff for a call option is
 
:<math>\max\left[(S-K);0\right]</math>
 
also written as
:<math>(S-K)^{+} \ </math>
 
where
:<math>(x)^+ =\{^{x\ \ x\geq0}_{0\ \  x<0}</math>
 
A [[put option]] has positive monetary value at expiration when the underlying has a spot price ''below'' the strike price; it is "[[out-the-money]]" otherwise, and will not be exercised. The payoff is therefore:
:<math>\max\left[(K-S);0\right]</math>
or
:<math>(K-S)^{+} \ </math>
 
For a [[digital option]] payoff is <math>1_{S\geq K}</math>, where <math>1_{\{\}}</math> is the [[indicator function]].
 
==See also==
*[[Option time value]]
*[[Intrinsic value (finance)|Intrinsic value]]
*[[Option screener]]
 
==References==
* {{cite book
| last = McMillan| first = Lawrence G.
| title = Options as a Strategic Investment
| edition = 4th ed.
| publisher = New York : New York Institute of Finance
| year = 2002
| isbn = 0-7352-0197-8
}}
 
{{Derivatives market}}
 
{{DEFAULTSORT:Strike Price}}
[[Category:Options (finance)]]
[[Category:Derivatives (finance)]]
 
[[sv:Derivatinstrument#Terminologi inom derivathandel]]

Latest revision as of 16:43, 7 January 2015

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A recent study was published inside the Diabetes, Metabolic Syndrome and Obesity Journal, that is quite a effectively esteemed health publication. In January, 2012, researchers followed a group of adults who were overweight, but not obese. They were given either a placebo, or a green coffee bean extract extract supplement that contained chlorogenic acids inside different dosages.

Well, happily, there is real scientific evidence to back up the claims created regarding Green Coffee Extract. In this particular article I might clearly explain, in easy however accurate terms, what this scientific evidence is plus how Green Coffee Extract is thought to help weight reduction.

So, how does it work? The active ingredient, because the advertisers selected to refer to the central plank to their pitch, is chlorogenic acid or acids. Some extract processors plus pill manufacturers major on simply several - or 1 - of these acids and place it inside a bottle. The acids abound inside the unroasted coffee bean. Roast them plus the fat-burning elements are destroyed. Yes. Fat burning is the trick.

Not startlingly, I'm good with this aid. Listen, I smell a rat. I'm not a wizard inside which. As others have reported, this really is where a limited beginning fat loss fans make their only mistake. It pertaining to this. Definitely, we read it right.

Green coffee beans are moreover packed up with anti-oxidants that are polyphenolic compounds. These compounds in the beans can enable we by promoting anti-aging effects. The compounds respond with the free radicals formed in the body plus aid destroy them. This prevents early aging. Also, these beans can assist improve blood circulation, boost cholesterol degrees plus enhance a immunity.

2) It has been shown to inhibit an significant enzyme found in the liver that is needed to break down glycogen: glucose-6-phosphatase (G6P). Now this has been shown inside the lab[2], nevertheless not yet inside a living animal, so how do we understand it actually does inhibit G6P whenever consumed? Well it has not been directly demonstrated, however, scientists have shown which chlorogenic acid is absorbed into the blood, through the stomach without getting degraded inside rats[3]. So it is very fair to assume which it arrives at the liver intact, where is will get to function inhibiting G6P.

Finally, you're going to should stick to the old diet-and-exercise way. It is not difficult to receive the recommended amount of exercise, yet it's vital which we do thus. The same is true for eating the right number of fruits plus veggies. If you're actually concerned with the ability to stick to your program, a weight loss journal will be a ideal resource. Visit the linked site to learn much more about green coffee pure.