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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) 863-0048
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was last updated on Tue, Aug 21, 2018.
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