The Exercise Price in an Option Contract Is

Multiple Choice

The exercise price in an option contract is:

A) The price of the underlying instrument at the time of the transaction
B) The price at which the transaction on the underlying instrument will be carried out if and when the option is exercised
C) The price the buyer of the option pays to the seller when entering into the options contract
D) The price at which the two counterparties can close-out their position