ABSTRACT
For over-the-counter options, the strike price or exercise price is chosen by the customer buying the option. Customers can stipulate whatever strike price they wish, but the bank will charge a higher or lower premium accordingly. For traded options, the available strike prices are decided by the options exchange, but several strike prices, typically seven, will be available for any given expiry date. The market price of options for the same expiry date will differ according to their strike price.
