Strike rate

Options

The rate at which the holder of an option has the right to oblige the writer of the option to deal.

In relation to foreign exchange options, the foreign exchange rate at which the option holder has the right to require the option writer to deal.

In relation to interest rate options, the interest rate at which the option holder has the right to require the option writer to deal.

Also known as the Exercise rate.

See also

• Foreign exchange
• Interest rate
• Option
• Strike price