By convention, standardized stock options expire on the A) first day of the expiry month B) last day of the expiry month C) 28^th day of the expiry month D) Saturday following the third Friday of the expiry month E) Friday after the first Monday of the month

Question

Quizplus · Accepted Answer

Standardized stock options expire on the third Friday of the expiry month. If that Friday is a holiday, the options expire on the preceding Thursday. Trading in the options continues until 4:00 p.m. Central Time on the business day before the expiration date. Therefore, the answer is D, which states that options expire on the Saturday following the third Friday of the expiry month.

By Convention, Standardized Stock Options Expire on the