Does the seller of the option have any control over the assignment?
No, the exchange has complete control over the assignment process.
Related Articles
When does the seller of a call option benefit?
The seller of the call option benefits when the price of the underlying asset is below the strike price at the expiry of the contract.
What does assignment mean in options?
Is a situation where the seller of the option will have to sell the underlying asset at the strike price, in case of call options, and buy the underlying asset at the strike price, in case of put options. However, in India, all options contracts are ...
What is the effect of selling a Call Option?
The seller of the call option has an obligation to sell the underlying asset at the strike price if the buyer of the call option chooses to execute his right. The seller receives a ‘Premium’ from the buyer.
What is the effect of selling a Put Option?
The seller of the put option has an obligation to buy the underlying asset at the strike price if the buyer chooses to execute his right. The seller receives a premium from the buyer.
What is the effect of buying a Call Option?
The buyer of the call option has the right, but not an obligation, to buy the underlying asset at the strike price at expiry. The buyer of a call option has to pay a ‘Premium’ to the seller for the privilege.