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 (law) — This article is about options as a legal concept. For other uses of options, see Option (disambiguation). Property law …   Wikipedia

  • 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

  • Number Assignment Module — (NAM) The NAM is the electronic memory in the cellular phone that stores the telephone number and an Electronic Serial Number. Phones with dual or multi NAM features offer users the option of registering the phone with a local number in more than …   Wikipedia

  • 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