lapsed option

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Lapsed option

An option that no longer has any value because it has reached its expiration date without being exercised.

Lapsed Option

An option that the holder does not exercise by the expiration date. A lapsed option has no value. Generally speaking, an option lapses if it is out of the money at the end of the expiration date or if exercising it would be otherwise detrimental to the holder's position.

lapsed option

An option that remains unexercised after its expiration. A lapsed option has no value.

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References in periodicals archive ?

"The approach of the ASB is excessively complex, the model is inappropriate (it was never developed to value employee share options but was aimed at shorter-term traded options) and to have to account for lapsed options is so far removed from reality as to be quite bizarre," he said.

Technical update. (News Round Up)

Other issues covered by the discussion paper include the treatment of lapsed options, options that are repriced or otherwise modified, employee share plans with cash alternatives, and share appreciation rights.

IASC PUBLISHES G4+1 POSITION PAPER ON ACCOUNTING FOR SHARE-BASED PAYMENT

Also discussed was the treatment of lapsed options, options that are repriced, employee share plans with cash alternatives and share appreciation rights.