Deferred Option Month

  

Categories: Derivatives, Accounting

When marking time waiting for an event to be over, whether it be a school semester, the MLB playoff season, or the end of the latest season of Grey’s Anatomy, one can count the months prior to D-Date.

The deferred option month(s) are the month or months left to go on an option or futures contract prior to expiration.

The deferred option month relative to the current month is used as a metric for time value calculation.

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