SIE Exam Question 210: Answer and Explanation

Question: 210

The price at which you can buy a security with a call is the ___________.

• A. Purchase price
• B. Sale price
• C. Offering price
• D. Strike price

Correct Answer: D

Explanation:

The price at which you can buy a security with a call is the strike price. The purchase price is how much investors pay for a security. The market price of a security is the current price it is being traded for on a given marketplace or exchange. Offering price refers to the stock price that investment banks initially set during an IPO.