The period over which a call or put option exists is
A)determined by its delivery date.
B)determined by its expiration date.
C)determined by whether the contract is written for a commodity or for a financial instrument.
D)indeterminate; options contracts continue in existence until either the buyer or the seller desires to discontinue it.

Question

Quizplus · Accepted Answer

The period over which a call or put option exists is determined by its expiration date, which is the date on which the option contract ceases to exist. The expiration date is determined at the time the contract is written and is typically several months in the future. After the expiration date, the option holder no longer has the right to exercise the option and the contract becomes worthless.

The Period Over Which a Call or Put Option Exists