An Expiration Date in derivatives is the last day that derivative contracts, such as options or futures, are valid. The expiration date is set when the contract is created and cannot be changed. On the expiration date, all contracts must be settled according to their terms. This means that buyers must either take delivery of the underlying asset or pay cash for it based on its current market value. Sellers must deliver the underlying asset to buyers or receive cash from them based on its current market value. If a buyer does not take delivery of the underlying asset by settlement time, they may be subject to a margin call.
