Glossary

Exercise price

The price at which an option, warrant or subscription share gives the right to buy an ordinary share also known as the strike price

Strike price

The price at which an option, warrant or subscription share gives the right to buy an ordinary share also known as the exercise price

An instrument that gives the holder a right but not the obligation to buy ordinary shares at a pre-determined price (the strike price or exercise price) on a given date or within a range of dates. It is like a warrant but eligible for inclusion in an ISA

Option – as in derivative

An option is a derivative contract that gives the holder the right but not the obligation to buy a security at a fixed price (the exercise price or strike price) at a date or within a range of dates in the future This should not be confused with a Warrant, which specifically relates to equities.

Warrant

An instrument that gives the holder a right but not the obligation to buy ordinary shares at a pre-determined price (the strike price or exercise price) on a given date or within a range of dates. This should not be confused with an Option, which applies to any security and not specifically to equities

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Glossary

Exercise price