Examlex
Suppose that an highway patrol officer can obtain radar readings on 500 vehicles during a typical shift. How many traffic violations would be found in a shift?
Strike Price
The set price at which an option contract can be bought (call) or sold (put) when it is exercised.
Market Price
The current price at which an asset or service can be bought or sold in a marketplace.
Call Option
A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.
Exercise Price
The cost at which an option's owner is allowed to purchase (for a call option) or sell (for a put option) the underlying asset.
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