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aggregate exercise price

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Financial Dictionary

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 Commentary

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 Links

Options Basics Tutorial

See also: Bond Option, Call, Contract Size, Exercise, Face Value, Option, Put, Strike Price

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Financial Dictionary

aggregate exercise price

In options trading, an option contract's exercise price multiplied by the number of securities specified in the contract. For example, a call option on 100 shares of Procter & Gamble common stock at an exercise price of $65 has an aggregate exercise price of 100 × $65, or $6,500.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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