Expiration date


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Expiration date

The last day (in the case of American-style) or the only day (in the case of European-style) on which an option may be exercised. For stock options, this date is the Saturday immediately following the third Friday of the expiration month; brokerage firms may set an earlier deadline for notification of an option holder's intention to exercise. If Friday is a holiday, the last trading day will be the preceding Thursday.

Expiration Date

The date by which an option contract is abandoned and becomes worthless unless it is exercised. In an option contract, the holder has the right, but not the obligation, to buy or sell (depending on the type of option) the underlying asset within a certain period of time. The expiration date is the time at which the holder will lose the right to exercise the option. A European option can only be exercised on the expiration date, while an American option can be exercised at any point prior to the expiration date.

expiration date

The last day on which an option holder may exercise an option. This date is stated in the contract at the time the option is written.

Expiration date.

The expiration date is the day on which an options contract expires and becomes worthless. Listed options always expire on the Saturday following the third Friday of their expiration month.

For example, if you hold an American-style September equity option, you can exercise it any time before the end of trading on the third Friday in September, or whatever cutoff time your brokerage firm sets. In contrast, European-style options can be exercised only at expiration, usually on Friday.

Under specific circumstances, listed options will be exercised automatically at expiration unless the owner gives instructions not to exercise them.

Unlike the standard term of a listed option, the expiration date of an over-the-counter option is negotiated at the time of the trade.

References in periodicals archive ?
However, California does require any expiration date to be printed on the card.
00 for each $1,000 principal amount of Notes for which consents to the proposed amendments are delivered on or prior to the Consent Expiration Date (the "Consent Payment").
Notes validly tendered and not withdrawn prior to the Expiration Date will have a Settlement Date of May 8, 2006, assuming the Expiration Date is not extended.
CenterPoint Properties Trust announced today that it has extended the Consent Date for the previously announced Consent Solicitations relating to the indentures governing its outstanding $450 million of senior unsecured notes (the "Notes") and extended the Expiration Date for the previously announced Tender Offers relating to the Notes.
Notes validly tendered and not withdrawn prior to the Expiration Date will have a Settlement Date of April 27, 2006, assuming the Expiration Date is not extended.
Hercules announced that it has purchased all Notes validly tendered pursuant to the Offer and not withdrawn prior to the Expiration Date.
The new feature allows marketers to set a warning date and an expiration date for each marketing and sales asset in their TagTeam system.
The SBPA will expire on the initial stated expiration date of March 30, 2009, unless such date is extended, or upon the occurrence of other events of termination, as specified in the SBPA.