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Lets explore a bit how the price of an option can vary, or how it can relate to the actual expiration date. So what Im going to do is compare two similar options with the underlying stock being General Electric. And theyre going to be the same in every way, except one is going to have a further out expiration date. So lets compare this call option right here. So this is a call option on GE with a $17 strike price. So its the option to buy GE stock at $17. And it has an April, 2011 expiration. So its going to expire, or the last day of trading that you could trade this option, will be the third Friday in April. Lets compare that with an option that has the same strike price, but has a December, 2011 expiration. So were going to look for $17 strike price right over here. And you can see right when you compare the options that the one that has a further out expiration cost more. This one costs $3.25, while this one only cost $2.36. And the reason why it costs more is because you g
