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Glossary Term: EXPIRATION DATE

Definition(s) for EXPIRATION DATE:


1. ) Options on futuresgenerally expire on a specific date during the month preceding the futurescontract delivery month. For example, an option on a March futures contractexpires in February but is referred to as a March option because its exercisewould result in a March futures contract position.

2. ) The date after which an option can no longer be exercised. If an option has not been exercised by its expiration date, it becomes worthless and ceases to exist. The expiration date for most options is the Saturday following the third Friday of the expiration month.

3. ) The day on which an option contract becomes void. The expiration date for listed stock options is the Saturday after the third Friday of the expiration month. Holders of options should indicate their desire to exercise, if they wish to do so, by this date. See also Expiration Time and Automatic Exercise.

4. ) The date on which an option and the right to exercise it cease to exist.



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