Options Trading Tutorial

what happens if an option's strike price is higher than the market price?

My company is merging with another company and will be buying back the stock option plan granted to us. But the strike price granted to some of us is higher than the current market price. I don't know anything about stock options. Does not even have the idea how it works. Will we still be getting something from this? The company promises to pay all shares even if some of the shares have not matured and had promised to pay the amount per share based on the current market's price. Some of us had been granted higher than this amount though.

Public Comments

1. If your buy price is above what the stock is worth, you will most likely get nothing for the shares. My guess is that they are going to buy the options at the current price and pay you the difference if it is positive.