Assignment
Assignment is the process by which the writer of an options contract is notified to fulfill the contract obligations after the holder exercises the option; for a call writer, this means delivering the underlying asset at the strike price, while for a put writer, this means acquiring the underlying asset at the strike price.
Example: Example: A trader who is the writer of a call option with a strike of 50 faces assignment after exercise; the writer must deliver 100 shares at 50 per share and, if they do not own the shares, must acquire them to fulfill the obligation.
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