An option that no longer has any value because it has reached its expiration date without being exercised.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An option that remains unexercised after its expiration. A lapsed option has no value.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.