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Expiration

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.02 sec.
Expiration
The time an option contract lapses.

expiration
The relinquishment of the rights of an options contract by permitting the contract to terminate on the expiration date. Also called abandonment.

Expiration
In options, the date on which the contract will become worthless if the option is not exercised. If the option holder allows a contract to expire, this indicates that he/she did not believe it would be advantageous to exercise the option. For example, one may hold a call with a low strike price with the expectation that the price on the underlying asset will increase by the expiration. If the price stays the same or drops, it may be best for the investor to allow the contract to expire. The expiration is also called the expiration date.


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