Also called exercise price. The strike price is a fixed price marker that determines the value of a securitised derivative at the end of its term. In the case of a warrant, the strike price is the price of the respective underlying asset at which the buyer of the warrant has the right (but not the obligation) to buy (call) or sell (put) a share. In the case of reverse convertibles, on the other hand, the strike price determines the repayment of the bond at maturity. If the respective underlying asset is quoted below the strike price of the bond on the reference date, repayment is usually made in the form of equities. In the case of index-linked bonds, redemption takes place in the form of index certificates, fund units or the cash payment of the current index value. If, however, the underlying asset is quoted above the strike price, the bond is redeemed in cash.