Intro to Investments
The expiration date is the predetermined date on which an options contract becomes void and can no longer be exercised. It is crucial for options trading as it dictates the time frame in which an option holder can exercise their right to buy or sell the underlying asset at the agreed-upon price. The expiration date plays a significant role in the valuation of options, as the time remaining until expiration influences the option's premium and overall market behavior.
congrats on reading the definition of Expiration Date. now let's actually learn it.