Derivatives
Expiration Date
Definition
What is Expiration Date?
The date on which a derivativeA contract whose value depends on an underlying asset, rate, index, or event. contract expires or must be settled.
Example in practice
How This Looks in Practice
The option loses all remaining time valueThe part of an option premium exceeding intrinsic value, reflecting time and uncertainty before expiration. at expiration.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.