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Define: Options Expiration



Options Expiration is the day when the lifespan of an option runs out and is resolved according to its terms and conditions beyond which day the option will cease to exist.

When options expire in the money, they will be automatically exercised and when options expire out of the money, they will simply cease to exist with no further obligations from the holder or the writer. This is what is referred to as "Expiring Out Of The Money".

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