Aggregate Exercise Price Definition

Forex Glossary

Definition

The word aggregate exercise price denotes the strike price of the option multiplied by the range of securities from the contract. The aggregate exercise price doesn’t consider any premium paid, or received, to the option.

Calculation

Aggregate Exercise Price = Strike Price of Option x ray Contract Size

Note: There are 100 shares of stock in an ordinary option contract.

Explanation

The aggregate exercise price tells the buyer how much money is paid off, or received, in the event the stocks are sold or purchased. By way of instance, if a worker of Company ABC is granted stock options which allow her for 1000 shares of stock at $10.00 per share, the aggregate exercise price of the option is 1000 x 10.00, or $10,000. The aggregate exercise price calculation doesn’t take in to consideration premiums paid, or received, to the option.

The aggregate exercise price of a debt instrument will be set by carrying the physical exercise price of this option and multiplying it by the face price of the inherent security (bail ).