Expiration date

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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 ?
Any fresh ground beef in a Styrofoam tray with sell-by dates between 5/9 and 6/20
The items were just one per cent of all the items on display with a sell-by date, but 44 items is too many.
But they quickly established that the sell-by date was not all that it seemed.
Mr Carlson added there are about 4,500 items in the store's chiller cabinets and the items found to be past their sell-by date amounted to a tenth of one per cent of that total.
The EU pen-pushers have decreed that the wafers - or hosts - should carry sell-by dates.
THEY won't be at their best but there's nothing wrong with these nutritionally or safety-wise for up to two weeks after the sell-by date.
Kwik Save is part of Somerfield Stores Ltd, which was fined a total of pounds 7,000 for seven counts of selling food past its sell-by date.
magazine said processing plants may relabel the sell-by date several times before meat reaches shelves and it is all legal.
The offences involved delicatessen-type foods which were up to a week past their sell-by dates.
The recalled products are Columbus, Alpine and Pocino brands that were distributed pre-sliced in three pound packages that bore a sell-by date of May 7, 1995.
The snacks, three Dairylea Lunchables, were on sale in a fridge on February 12 even though their sell-by date was January 20.
SAINSBURY'S isn't the first supermarket to give food that's past its sell-by date to the homeless (Mirror Mailbox, July 16).