Definition: The expiration date is the date after which an option is void an ceases to trade or exist. Expiration dates are set by the exchange at which the given commodity contract and its options are traded.
Option contracts have a limited life and expire just like futures contracts.
Also Known As: options expiration, end of contract
Examples:Trader Rick just purchased a December $3.60 corn call at 16 cents. The futures option contract expires on November 22nd. Rick will have to either sell the option contract or convert it to a December futures contract before November 22nd. He also has the option of letting it expire worthless.