Aggregate Exercise Price

AAA

DEFINITION of 'Aggregate Exercise Price'

The strike price of a put or call option multiplied by its contract size. Aggregate exercise prices are used to determine the dollar amount required should the option be exercised.

INVESTOPEDIA EXPLAINS 'Aggregate Exercise Price'

For example, if options on ABC co. have a contract size of 100 shares and a strike price of $10, then the aggregate exercise price will be $1000 ($10 * 100 shares). In the case of a bond option, the exercise price is multiplied by the face value of the underlying bond.

RELATED TERMS
  1. Call

    1. The period of time between the opening and closing of some ...
  2. Exercise

    To put into effect the right specified in a contract. In options ...
  3. Contract Size

    The deliverable quantity of commodities or financial instruments ...
  4. Face Value

    The nominal value or dollar value of a security stated by the ...
  5. Bond Option

    An option contract in which the underlying asset is a bond. Other ...
  6. Option

    A financial derivative that represents a contract sold by one ...
Related Articles
  1. Introduction To Put Writing
    Options & Futures

    Introduction To Put Writing

  2. An Introduction To Gamma-Delta Neutral ...
    Options & Futures

    An Introduction To Gamma-Delta Neutral ...

  3. Options Basics Tutorial
    Options & Futures

    Options Basics Tutorial

  4. The 4 Advantages of Options
    Options & Futures

    The 4 Advantages of Options

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center