Expiration date

(redirected from Expiration Dates)
Also found in: Dictionary, Medical, Encyclopedia.

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 ?
Expiration dates and service fees, including dormancy fees, are prohibited for this type of card, with limited exceptions.
An exception -- to the rule of no expiration dates for cards good at a single business or its affiliates -- is a gift card or gift certificate for a food item.
Best Buy gift cards have no expiration date or maintenance fees.
It is for these reasons Esterin USA refuses to guarantee an expiration date beyond two years following manufacturing -- which also degrades potency due to the high heat and compression required to form the pill.
The expiration date of the Series A Warrants was extended until June 15, 2000, the expiration date of the Series B Warrants was extended until Oct.
The extension of the A Warrant expiration date until June 15, 2000 allows sufficient time for this information to reach the street name shareholders.
When credit cards are issued with an expiration date in the next century, ICVERIFY's merchants will already be equipped to correctly read and transmit the information to their banks," said Chairman and Founder Steven M.
The consent expiration date for each series of OrNda notes will occur after Tenet has received consents from holders of not less than a majority of the outstanding principal amount of such series of notes.