For All Practical Purposes, Listed Stock Options Always Expire

question 62

Multiple Choice

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.

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Definitions:

Price

The amount of money required to purchase an item or service.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain types of contracts to be executed in writing to be enforceable.

Securities

Financial instruments representing an ownership position, debt, or rights to ownership, traded in financial markets, such as stocks, bonds, and options.

Security Interests

A legal claim or lien on collateral that secures the performance of an obligation, typically seen in financing transactions.