This article was originally published in The Option Strategist Newsletter Volume 11, No. 3 on February 14, 2002.
In looking at some of the questions that have been submitted to us through the Q&A section of our web site and at the Intensive Option Seminar that was recently held in Boca Raton, FL, it is apparent that a number of them have to do with expiration – how an individual trader should handle a trade, what price index options are settled at, how arbitrage might affect the market or an individual stock, and so forth. This article will address all of the questions that have been asked, by interspersing the questions with commentary that answers the questions and expands on the concepts.