Formally, the strike price can be defined as the fixed price at which the owner of an option can purchase (in the case of a call), or sell (in the case of a put), the underlying security or commodity.

In options, the strike price (or exercise price) is a key variable in a derivatives contract between two parties. Where the contract requires delivery of the underlying instrument, the trade will be at the strike price, regardless of the spot price (market price) of the underlying instrument at that time.

For example, an IBM May 50 Call has a strike price of $50 a share. When the option is exercised the owner of the option will buy 100 shares of IBM stock for $50 per share.

Moneyness is a term describing the relationship between the strike price of an option and the current trading price of its underlying security. Where settlement is financial, the difference between the strike price and the spot price will determine the value, or "moneyness", of the contract.

In options trading, terms such as in-the-money, at-the-money and out-of-the-money describe the moneyness of options.

Jessica Ann Simpson (born July 10, 1980) is an American recording artist, actress, television personality and fashion designer whose rise to fame began in 1999. Since that time, Simpson has achieved many recording milestones, starred in several television shows, movies and commercials, launched a line of hair and beauty products and designed fragrances, shoes and handbags for women. She has devoted time to philanthropic efforts including Operation Smile and a USO-hosted tour for troops stationed overseas. She started the Jessica Simpson Collection in 2005.

She has achieved seven Billboard Top 40 hits, three gold and two multi-platinum Recording Industry Association of America (RIAA) certified studio albums, four of which have reached the top 10 on the US Billboard 200. She has sold 30 million albums worldwide. Simpson starred with her then-husband Nick Lachey in the MTV reality show Newlyweds: Nick and Jessica. She ventured into the country music market in 2008 and released Do You Know.

During the first part of 2010, Simpson released her second reality show on VH1 "The Price of Beauty." In October 2010 she released her first compilation album and last album under the label of Epic Records , with the name Playlist: The Very Best of Jessica Simpson. A month later she released her second Christmas album Happy Christmas under the label Primary Wave Records, owned by EMI.