Expiry Date/Price
Expiry date/price is a term used in the financial world to refer to the date and price at which a derivative contract, such as a futures or options contract, expires. On the expiry date, the contract is settled and the buyer and seller must either fulfill their obligations or close out their positions. The expiry date/price is an important factor in determining the value of a derivative contract and can have a significant impact on the profitability of a trade.
History of Expiry Date/Price
The concept of expiry date/price has been around for centuries. In the early days of trading, contracts were often settled on the spot, with the buyer and seller agreeing to a price and exchanging goods or services immediately. Over time, however, traders began to use derivatives to hedge their positions and to speculate on the future price of an asset. As derivatives became more popular, the concept of expiry date/price was developed to ensure that contracts were settled on a specific date and at a predetermined price.
Today, expiry date/price is an important concept in the financial world. Derivatives are used by traders to speculate on the future price of an asset, and the expiry date/price is a key factor in determining the value of a derivative contract. As such, it is important for traders to understand the concept of expiry date/price and how it can affect their trading strategies.
Table of Comparisons
| Type of Contract | Expiry Date/Price |
|---|---|
| Futures | The last day of trading for the contract |
| Options | The third Friday of the expiration month |
| Swaps | The date specified in the contract |
Summary
Expiry date/price is an important concept in the financial world. It is the date and price at which a derivative contract expires, and it can have a significant impact on the profitability of a trade. Traders should understand the concept of expiry date/price and how it can affect their trading strategies. For more information about expiry date/price, traders can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Derivatives
- Options
- Futures
- Swaps
- Hedging
- Speculation
- Strike Price
- Premium
- Volatility
- Margin
