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. |
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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. |
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