expiration date definition

expiration date

General: (1) Date on which an agreement, appropriation, contract, facility, offer, right, etc., ceases to be effective or operative. (2) Date on which when a product becomes legally un-sellable and should be pulled off the shelves of its seller. See also pull date.

Options trading: Last day on which an option contract can be exercised. American options allow exercising of option on any day up to the expiration date; European options can only be exercised on the last (maturity) day. If the option is not exercised at all, it is said to have 'expired worthless.' Also called closing date, closing day, or expiry date.

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