Aggregate Exercise Price


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.

  1. Contract Size

    The deliverable quantity of commodities or financial instruments ...
  2. Option

    A financial derivative that represents a contract sold by one ...
  3. Bond Option

    An option contract in which the underlying asset is a bond. Other ...
  4. Face Value

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

    To put into effect the right specified in a contract. In options ...
  6. Put

    An option contract giving the owner the right, but not the obligation, ...
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