Expiration date

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Related to Exercise Date: Exercise notice, Exercising an Option

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 ?
In general, if at the exercise date the SP is more than the market price (MP), the investor would lose money on the transaction.
Therefore, a student could still theoretically take out a significant amount of loans and just purchase the option contract with the intention of never paying off the entirety of the loan by the exercise date. The chance of students abusing this system could turn out to be too high.
In testing Hypotheses 1 and 2, we run this model on all options exercises between the vesting date and one month prior to expiration with the control variables defined in relation to the exercise date. (1) The regression methodology used to estimate Equation (1) is the logit model.
By that amendment, it became possible to introduce stock option plan by the approval of the shareholders' meeting to issue shares at the price significantly lower than the market price at the exercise date. Special Taxation Measures Law Article 29-2 was amended and preferential tax treatment for stock options for designated high tech firms were introduced in 1996.
The date on which the transaction occurs is known as the "exercise date."
It also may be used to describe an arrangement like an SAR with a fixed exercise date. The treatments described here reflect only the definition given above.
payment on the exercise date of the future value of $3, in conjunction
Third party banks ("Loan Providers") propose to loan money to high net worth individuals ("Clients") to purchase insurance policies ("Policies") from life insurance companies and pay premiums due under an option agreement ("Put Option") to sell such Policy to a third party on a predetermined date ("Exercise Date"), which will be at least two years from the date of the loan.
One of the keys, however, is the exercise date, bringing us to the latest rage in corporate misbehavior--options backdating.
According to legal papers submitted to the state insurance department, the client wanted to be able to provide a "put option" agreement to the insured whereby the provider, a European hedge fund, would buy the policy on the exercise date at a set price.
Another unique private company wrinkle is "phantom stock," a grant of the right to profit from appreciation of the company's profits or sales, with a fixed exercise date and a formula for calculation.