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TeachMeFinance.com Aggregate Exercise Price -- Term used in stock options transactions. It is the product of the quantity of shares in a put or CALL contract (typically 100) and the Exercise Price. Aggregate Exercise Price does not incorporate the premium, which is the actual price of the option. A call option on 100 shares at 85, for example, would have an aggregate exercise price of $8,500 if acted upon no later than the period of expiry.
For certain options the aggregate exercise price is calculated by multiplying the Face Value of the concerned security by the exercise price. These options are transacted upon debt schemes such as Treasury bonds , Treasury bills, Treasury notes, a few municipal bonds, and Government National Mortgage Association (GNMA) pass-throughs.
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