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Glossary Detail: Strike Price & Expiration

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Backtesting Strike Price & Expiration on High-Beta Names

The strike is the price at which the option can be exercised; expiration is when the contract expires. Together they define an option contract.

Further Details:

The strike price is the predetermined price at which the option holder can buy (call) or sell (put) the underlying asset. The expiration date is when the option contract ceases to exist. Together, the underlying + strike + expiration + type uniquely identify an options contract.

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