strikehinta

Strikehinta, in English known as strike price or exercise price, is the fixed price at which the holder of an option can buy (call option) or sell (put option) the underlying asset when exercising the option. The strikehinta is set when the option contract is created and remains constant for the life of the contract. Options may be traded on exchanges or negotiated OTC, with the strikehinta specified in the contract.

The strikehinta determines the option’s payoff at expiry. For a call option, the payoff is the amount by which the underlying’s price at expiry exceeds the strikehinta, or max(S_T − K, 0). For a put option, the payoff is max(K − S_T, 0), where S_T is the price of the underlying at expiry and K is the strikehinta. The relation between the current price of the underlying and the strikehinta defines moneyness: in the money, at the money, or out of the money. Options that are in the money tend to have higher intrinsic value, while those out of the money have value mainly from time and volatility.

Strikehinta levels are often predetermined by the exchange for listed options and are spaced to cover different market scenarios. In OTC contracts, the strikehinta can be negotiated. The strikehinta influences the option’s premium: deeper in-the-money options typically command higher premiums, while at-the-money options often have high liquidity. Other factors affecting price include time to expiry, volatility, interest rates, and expected dividends.