Final Trading and Exercise Dates

What this video covers

• The exact difference between the last trading day (final day to offset or trade the option) and the expiration date (final day to exercise), and why they can differ with one falling before the other
• Why offsetting dies when the last trading day passes, even though exercising may continue through expiration
• American-style exercise (any time up to and including expiration) versus European-style exercise (only at expiration), and the memory aid that locks the distinction in place
• Why style is separate from dates, so an American-style option still loses its offset door on the last trading day regardless of its anytime exercisability
• What in-the-money (ITM) and out-of-the-money (OTM) mean at expiration, and the default auto-exercise pathway for each moneystate
• How contrary instructions act as a manual override, allowing a holder to exercise an out-of-the-money option or abandon an in-the-money option despite the default auto-exercise setting
• The exam's favorite traps around assuming dates coincide, assuming offset survives past the last trading day, and treating auto-exercise as an unbreakable rule