What is the future strike price?

Depending on the market conditions at the time of expiration, the option holder may find it beneficial to exercise their option if the strike price is favorable compared to the current market price of the asset.

The strike price is a fundamental aspect of options contracts, serving as a predetermined price point for the future execution of the agreement.

For instance, if the holder of a call option believes the market price of the underlying asset will exceed the strike price, they may choose to exercise their right to purchase the asset at the lower strike price.

Conversely, if the holder of a put option anticipates the market price dropping below the strike price, they may elect to sell the asset at the higher strike price, securing a profit.

This specific price is crucial as it defines the threshold at which the option holder can exercise their right to buy or sell the underlying asset.