Home | Previous | Next | Huddart Site Map

Expiration date

The day when an option contract becomes void. Unless the holder exercises his rights, the contract becomes worthless or void after this date. For exchange-traded stock options, the expiration date is the Saturday after the third Friday of the month of the contract. For employee stock options, the date is specified by the option grant agreement or contract. Often, the expiration date is ten years after the Grant date.

---

Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 865-3271
(814) 863-8393 fax
huddart@psu.edu
vCard Home | Previous | Next | Huddart Site Map

http://www.personal.psu.edu/sjh11/OptionGlossary/ExpirationDate.shtml
was last updated on Wed, Oct 7, 2009.
Today is Wed, Nov 25, 2009.

Unless otherwise noted, all material is:
Copyright ©1995-2009 Steven Huddart. All rights reserved.