Final answer:
The strike price of an option is also referred to as the exercise price. It is the predetermined price at which the option can be exercised or bought or sold in the future.
Step-by-step explanation:
The option's strike price is also called the exercise price. The strike price is the predetermined price at which an option can be exercised or bought or sold in the future.
For example, if you buy a call option with a strike price of $50, you have the right to buy the underlying asset at $50 per share at any time before the option's expiration date.
The strike price plays a crucial role in determining the profitability of an option trade.