Stock Option Savvy: Strike Price vs. Exercise Price Explained

Strike price Vs Exercise Price are often used interchangeably and often mean the same thing. However, there is a slight difference: While the “strike price” is announced when the option is given, the “exercise price” is reflected during the exercise of the option. The difference is small, especially when it comes to employee stock options, which are essentially the same. The difference between these two terms comes into play when discussing them from an ESOP perspective and stock options derivation perspective.