Business Glossary

in stock options trading, the number of shares in a put or call contract (normally 100) multiplied by the exercise price . The price of the option, called the premium , is a separate figure not included in the aggregate exercise price. AJuly call option on 100 XYZ at 70 would, for example, have an aggregate exercise price of 100 (number of shares) times $70 (price per share), or $7,000, if exercised on or before the July expiration date.

In options traded on debt instruments, which include government national mortgage association (GNMA) pass-throughs, Treasury bills, Treasury notes, Treasury bonds, and certain municipal bonds, the aggregate exercise price is determined by multiplying the face value of the underlying security by the exercise price. For example, the aggregate exercise price of put option Treasury bond December 90 would be $90,000 if exercised on or before its December expiration date, the calculation being 90% times the $100,000 face value of the underlying bond.