The predetermined price at which an option holder can buy (call option) or sell (put option) the underlying asset when exercising the option. The strike price remains fixed throughout the option's life regardless of market price movements.
From Old English 'strīcan' (to go, proceed) meaning to agree upon, combined with 'price' from Latin 'pretium'. The term emerged in organized options trading in the 1970s when the Chicago Board Options Exchange standardized option contracts.
The strike price is like the 'deal price' locked in when you buy an option - if you hold a call option with a $100 strike price, you can buy that stock for exactly $100 whether it's trading at $80 or $150. It's the price that determines whether your option ends up worthless or valuable!
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