The exercise price is the price at which the holder of a call option can buy the underlying asset, or the price at which the holder of a put option can sell the underlying asset. Is it better to exercise options when the price is high or low? It is better to exercise options when the price is high. This is because you will be able to sell the underlying asset at a higher price, and thus realize a higher profit. What if exercise price is higher than market price? If the exercise price is higher than the market price, it means that the option is "out of the money" and the option will expire worthless.
What happens when an option hits the strike price? When an option hits the strike price, it means that the option is now in the money. This can happen either at expiration or during the life of the option. If the option is in the money at expiration, then the option will be exercised and the holder will be assigned the underlying security. If the option is in the money during the life of the option, then the option will have intrinsic value and will be worth at least the strike price.
Do I lose my premium if I exercise a call option?
No, you do not lose your premium if you exercise a call option. The premium is the amount you pay for the option, and it is non-refundable. When you exercise a call option, you are buying the underlying asset at the strike price. The premium is the cost of buying the option, and it is not refunded when you exercise the option.
Is exercise price same as strike price?
The strike price is the price at which the holder of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset. The exercise price is the price at which the option holder can actually buy or sell the underlying asset.
So, the answer to the question is "No", the exercise price is not the same as the strike price.