The strike price ( The price specified in an option contract. For a call, it's the price at which the option holder can buy a stock; for a put, it's the price at which the option holder can sell the stock. ) of a cash-settled option is the basis for determining the amount of cash, if any, that you are entitled to receive upon exercise or expiration of the option. The amount of cash you receive is called the exercise settlement amount, and it is calculated as the difference between the strike price of the option and the level of the underlying index reported as its exercise settlement value, or exercise price. This is the option's intrinsic value and is generally multiplied by $100. If you hold a call (An option that grants the right to buy a given stock at a given price (the strike price) during a given period of time. The call holder profits if the market price rises higher than the strike price. ) and the underlying index value is above the strike price, you can exercise the option and receive the exercise settlement amount. If you hold a put ( An option that grants the right to sell a given stock at a given price (the strike price) during a given period of time. The put holder profits if the market price goes below the strike price. ) and the underlying index value is below the strike price, you can exercise the option and receive the exercise settlement amount.

For example, if you hold a call for index options with a strike price of $1,000, and the exercise price is $1,010, you can exercise the option and receive $1,000 (a difference of $10 multiplied by 100).