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The time an option contract lapses.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


The relinquishment of the rights of an options contract by permitting the contract to terminate on the expiration date. Also called abandonment.
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.
References in periodicals archive ?
The statistic above is employed to test the joint hypothesis that the dividend corrected Black and Scholes model provides accurate estimates of call option prices and that call options are correctly priced around option expiration.(3) Mean values of [Mathematical Expression Omitted] that are significantly different from zero support rejection of the joint hypothesis.
In this small but emerging field of research that seeks to understand and illuminate the role of expiration dates in consumer behavior, few researchers (Cardello and Schutz 2003; Harcar and Karakaya 2005; Miranda and Konya 2006; Wansink and Wright 2006) focused their attention on consumers' awareness and perceptions of expiration dates.
RevBase dispatches an email to all relevant users to inform each user of the item's expiration.
The authority has said that tampering of expiration dates of products is a violation of Article 7 and Article 3 of the PACP law.
A study that used SLEP data evaluated 122 drugs representing 3,005 lots, with 88% of these extended at least 1 year past the expiration date, with an average extension of more than 5 years.
Lee Cantrell, PharmD, and coinvestigators looked at sealed drugs from a retail pharmacy that were 28-40 years past their expiration date.
For medications that are used infrequently--analgesics, antihistamines, and medications for traveler's diarrhea--they appear to be stable for years past expiration, and there is little risk to the patient if the medications are not fully effective.
* A perfectly flat expiration profile (each month sees exactly the same number of expirations); and
The reports are due on the fourth anniversary of the last license renewal application deadline, four months ahead of the license expiration date.
(NASDAQ: NFLX) reported its stockholder rights plan was amended to accelerate the expiration date to December 30, 2013, effectively terminating the plan as of that date.
Summary: In a joint effort, The General Directorate of Residence and Foreigners Affairs (GDRFA) and the Directorate of Naturalization (DNRAD) in Abu Dhabi will launch on Monday the 'Remember' initiative aimed at both nationals and residents as a reminder to verify expiration dates on passports and residencies to ensure a timely legal renewal, as well as preserve them as important official documents from damage or loss.
Even with the patent expiration of Lipitor in late 2011, 2012 was the best in several years for generic growth from brand patent expirations.