Definition Key Term The price at which the owner of an option can purchase or sell the underlying security if they want to utilize the option. Call Option A contract that gives the owner the right, but not the obligation, to sell a specific financial instrument for a specific price within a specific period of time. Put Option Strike Price A contract that gives the owner the right, but not the obligation, to purchase a specific financial instrument for a specific price within a specific period of time. A put option is said to be this when the market price of the underlying security exceeds the exercise price of the put option