The final date on which an options contract can be exercised, after which the contract becomes worthless if not exercised. This date creates urgency and affects the option's time value, with contracts losing value as expiration approaches.
From Latin 'expirare' meaning 'to breathe out/die' and 'datum' meaning 'given.' The concept of contract expiration dates evolved from agricultural commodity trading, where seasonal harvests created natural time limits for forward agreements.
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