For all practical purposes, listed stock options always expire

A) on the last business day of the expiration month.

B) on the first Monday of every calendar quarter.

C) on the third Friday of the expiration month.

D) three months from the date of the option purchase.

C.) on the third Friday of the expiration month.

Question

Business

Rayan

17 February, 23:27

For all practical purposes, listed stock options always expire

A) on the last business day of the expiration month.

B) on the first Monday of every calendar quarter.

C) on the third Friday of the expiration month.

D) three months from the date of the option purchase.

C.) on the third Friday of the expiration month.

+1

Answers (1)

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Brenden Ritter · Answer 1

The correct answer to the following question is option C) stock options would expire on the third Friday of the expiration team.

Explanation:

Options are those type of derivatives, whose value can be derived from the underlying value of the securities and it is a type of contract between buyer and seller where they have the right to buy (call option) and sell (put options) the asset at a predetermined price and time but it is not an obligation. The stock options expires usually on the third Friday of the expiration month.