The price specified on an option that the holder can

Solution

In options trading, the strike price is the predetermined price at which the holder of the option can buy or sell the underlying asset. The underlying asset can be a stock, a commodity, a currency, or any other financial instrument. If the holder of a call option exercises the option, they have the right to buy the underlying asset at the strike price. On the other hand, if the holder of a put option exercises the option, they have the right to sell the underlying asset at the strike price.