What does assignment mean in options?

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• What does Premium mean in options?

  Premium is the downpayment that the buyer is required to make to the seller for entering into the options contract.

• What does Strike Price mean in options?

  It is the price at which the underlying asset is agreed to be bought/sold at the expiry of the contract.

• What does In The Money (ITM) options mean?

  An option is said to be In-The-Money if upon exercising it, the option buyer gets positive cash flow.

• What is options spread?

  An options spread is when the investor buys as well as sells options of the same underlying security but of different strike prices and/or different expiries.

• Does the seller of the option have any control over the assignment?

  No, the exchange has complete control over the assignment process.