Can I exercise a call option below strike price?
You can choose to exercise your call option if it is “in the money,” meaning the strike price is lower than the stock price. For example, if the strike price is $30 and the stock price is $20, exercising would not make you money because you can purchase the stock for $10 less than the strike price.
What if exercise price is higher than market price?
An in-the-money put option is when the exercise price is above the market price. Thus, the holder is eligible to sell the security at a price higher than what is being offered. For example, a put option with a strike price of $60 would be in the money if the market price is $45.
How do you calculate exercise price?
You can calculate the aggregate exercise price by taking the strike price of the option and multiplying it by its contract size. In the case of a bond option, the exercise price is multiplied by the face value of the underlying bond.