option assignment

option assignment
The random selection of an option writer to take a futures position when an option is exercised. The option writer receives a short futures position (if the trader was short a call) or a long futures position (if the trader was short a put) at the option's strike price. Chicago Mercantile Exchange Glossary

Financial and business terms. 2012.

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  • assignment — Options are exercised through the option purchaser s broker, who notifies the clearinghouse of the option s exercise. The clearinghouse then notifies the option seller that the buyer has exercised. When futures options are exercised, the buyer of …   Financial and business terms

  • Assignment — 1. The transfer of an individual s rights or property to another person or business. 2. A notice received by an option writer stating that the option sold has been exercised by the purchaser of the option. 1. Essentially, an assignment is the… …   Investment dictionary

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  • option — n 1. choice, alternative, Dial. druthers, possibility; answer, way out, solution; replacement, substitute, equivalent, surrogate, Plan B. 2. choosing, selection, adoption, acceptance, em bracement, espousal, choice; election, co option, co… …   A Note on the Style of the synonym finder

  • Single assignment — is used to describe a programming language or representation in which one cannot bind a value to a name if a value has already been bound to that name. In other words, a variable is initialized with (i.e. bound to) a value at the time that it is… …   Wikipedia

  • Changing legal gender assignment in Brazil — Laws concerning gender identity expression around the world.   Legal identity change …   Wikipedia

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  • early exercise (assignment) — The exercise or assignment of an option contract before its expiration date. Bloomberg Financial Dictionary …   Financial and business terms

  • co-option — noun 1. the selection of a new member (usually by a vote of the existing membership) • Syn: ↑co optation • Derivationally related forms: ↑co opt (for: ↑co optation), ↑co opt • Hypernyms: ↑ …   Useful english dictionary

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