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.
