What is my “exercise price” or “strike price”?
Your exercise price or “strike price” is the price at which the company will sell company stock to you. Hopefully, your exercise price is lower than the current market price, allowing you to buy the stock from the company at a discount, and sell the stock in the market for a profit. If your exercise price is lower than the current market price, the option has value and is termed “in the money.” If your exercise price is greater than the current market price, it may not be beneficial for you to exercise the option. Options priced higher than the current market are termed “out of the money.
