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.

BREAKING DOWN '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.

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RELATED FAQS
  1. How do I change my strike price once the trade has been placed already?

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