SIE practice questionhardOptions — Expiration Cycle
Standard listed equity options expire on:
- AAny business day chosen by the option holder
- BThe last business day of the expiration month
- CThe third Friday of the expiration month (or the preceding Thursday if that Friday is a holiday)✓ Correct answer
- DThe first Monday of the expiration month
Explanation
Why C — The third Friday of the expiration month (or the preceding Thursday if that Friday is a holiday)
Standard listed equity options expire on the third Friday of the expiration month (or the prior Thursday if the third Friday is a market holiday). The last trading day is also the expiration date for standard options. Weekly options (Weeklys) expire each Friday and provide more precise timing, but the standard expiration cycle centers on the third Friday.
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