Explanation:
A March-cycle stock option has expiration months in March, June, September, and December. Since today is August 3rd, the next listed expirations will be September and December of the current year, followed by March and June of the next year. Therefore, the correct sequence is September, December, March, and June.
Ultimate access to all questions.
No comments yet.
Q-607.1. Hull explains that stock options in the United States trade on one of three cycles: the January, February or March cycle. Specifically, "The January cycle consists of the months of January, April, July, and October. The February cycle consists of the months of February, May, August, and November. The March cycle consists of the months of March, June, September, and December." (Hull 10.4 Specifications of Stock Options)
Assume the stock options on XYZ Corp are on a March cycle and today is August 3rd. The options of XYZ Corp will trade today with expiration dates in which of the following months?
A
September, December, March and June
B
August, September, October, and November
C
August, September, October, and December
D
August, September, December, and March