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Expiration
ExpirationThe time an option contract lapses. RELATED TERMS-------------------------------------- Option The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date. Contract A term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange. SIMILAR TERMS-------------------------------------- Expiration cycle The recurring cycle of expiry months for which options on a particular security can be available. Basic options are placed in one of three cycles; Cycle 1 (the January-April-July-October, or the first month of each quarter); Cycle 2 (the second month of each quarter); or Cycle 3 (the third month of each quarter). Expiration date The last day (in the case of American-style) or the only day (in the case of European-style) on which an option may be exercised. Expiration time The time of day by which all exercise notices must be received on the expiration date. PREVIOUS AND NEXT TERMS-------------------------------------- Expected value The weighted average of a probability distribution. Also known as the mean value. Expected value of perfect information The expected value if the future uncertain outcomes could be known minus the expected value with no additional information. Expense ratio The percentage of the assets that are spent to run a mutual fund (as of the last annual statement). This includes expenses such as management and advisory fees, overhead costs, and 12b-1 (distribution and advertising) fees. Expensed Charged to an expense account, fully reducing reported profit of that year, as is appropriate for expenditures for items with useful lives under one year. Experience rating A technique insurance companies use to determine the correct price of a policy premium. Expiration Expiration cycle The recurring cycle of expiry months for which options on a particular security can be available. Basic options are placed in one of three cycles; Cycle 1 (the January-April-July-October, or the first month of each quarter); Cycle 2 (the second month of each quarter); or Cycle 3 (the third month of each quarter). Expiration date The last day (in the case of American-style) or the only day (in the case of European-style) on which an option may be exercised. Expiration time The time of day by which all exercise notices must be received on the expiration date. Ex-pit transaction The closing out of a futures position off the exchange floor. Effected when two hedgers, one long and one short, make a private deal in the cash market, and no longer need their (equal and opposite) futures contracts to hedge. Explicit bankruptcy costs Specific costs incurred during the bankruptcy process such as legal fees, court costs, consultants' fees, and document preparation expenses. We thank you for using the Financial Dictionary to search for Expiration. If you have a better definition for Expiration than the one presented here, please let us know by making use of the suggest a term option. This definition of Expiration may be disputed by other professionals. Our attempt is to provide easy definitions on Expiration and any other medical topic for the public at large.
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