Strike

A strike is fixed for investment products. At the beginning of the term, the strike of the underlying and the resulting barriers are fixed. The strike usually corresponds to the starting value of the underlying at the beginning of the term and, in the case of reverse convertibles and express bonds, denotes the threshold that decides whether the repayment at the end of the term will be made at the nominal amount or by delivery of shares. The barriers are specified as a percentage of the strike.

In the case of knock-out products, the strike often also corresponds to the knock-out threshold, which, if breached, makes the knock-out product worthless.

In the case of warrants, the strike is the value at which the buyer of a warrant can buy (call) or sell (put) the underlying asset.

The strike for interest cap warrants denotes the secured upper interest rate limit.