expiration date

noun

Definition of expiration date

1 : the date after which something (such as a credit card) is no longer in effect

2 : the date after which a product (such as food or medicine) should not be sold because of an expected decline in quality or effectiveness

Examples of expiration date in a Sentence

Check the expiration date on the bottle to make sure the medicine is still good.

Recent Examples on the Web

USA TODAY United Airlines is removing the expiration date on travelers' frequent flyer miles. — Dawn Gilbertson, USA TODAY, "No more frequent flyer freakouts: United removes expiration dates on miles," 28 Aug. 2019 The move sees United join Delta Airlines and JetBlue as the only U.S. airlines without an expiration date on their rewards programs. — Louis Cheslaw, Condé Nast Traveler, "United Miles Will Now Last a Lifetime," 28 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'expiration date.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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More Definitions for expiration date

expiration date

noun

Financial Definition of expiration date

What It Is

The expiration date is the last day an options contract can be exercised. After that, the contract becomes null and void.

How It Works

When an options contract is written, the expiration date is specified as one of its terms. For equity options, this date is usually the third Saturday of the specified month of expiration. The contract's expiration date is the last opportunity the holder has to exercise the options contract. When the expiration date passes, the terms of the contract become void and the contract loses the entirety of its market value.

Why It Matters

An option's price is made up of two main factors: intrinsic value and time value. Time value is directly related to the amount of time the option has before it expires. The longer an option has until its expiration date, the more time the underlying stock price has to move, which makes the option more valuable. As the contract moves closer to its expiration, the odds that the stock price will change are lower, and the option's value decreases.

Also, if an option is at or near its strike price near to its expiration, the volatility of the option will most likely increase.

Source: Investing Answers

expiration date

Definition of expiration date

Examples of expiration date in a Sentence

First Known Use of expiration date

Financial Definition of expiration date

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