Listen to a Business English Dialogue About Adjusted exercise price
Evelyn: Howard, do you know what an adjusted exercise price is?
Howard: Yes, it’s the price at which an option holder can buy or sell the underlying asset, adjusted for factors like stock splits or dividends.
Evelyn: Right, it ensures that the option remains fair and reflects changes in the value of the underlying asset over time.
Howard: Exactly. It’s important for investors to understand how adjustments can affect the value of their options.