What Happens to Extrinsic Value at Expiration? ⎊ Path

What Happens to Extrinsic Value at Expiration?

At expiration, all of an option's extrinsic value decays to zero. Since there is no more time for the underlying price to move favorably, the time value disappears entirely.

The option's premium will be equal only to its intrinsic value. If the option is OTM, both its intrinsic and extrinsic value will be zero, making the option worthless.

Does an Out-of-the-Money Option Have Intrinsic Value?

How Does an Option’s Moneyness Affect Its Premium?

What Is the Difference between an Option’s Intrinsic and Extrinsic Value?

Does Theta Decay Affect ITM Options Differently than OTM Options?

What Is the Difference between Intrinsic Value and Extrinsic Value of an Option?

Why Is a Deep ‘Out-of-the-Money’ Option’s Premium Composed Entirely of Extrinsic Value?

Why Might a Miner Prioritize a Zero-Fee Transaction over a Low-Fee One?

What Is the Significance of an Option Having Zero Intrinsic Value but a Positive Market Price?