SIE practice questioneasyExercise/assignment
When an option holder exercises their contract, who is selected for assignment?
- AOnly the original seller
- BThe writer with the largest position
- CA writer chosen at random by the Options Clearing Corporation✓ Correct answer
- DThe option expires worthless
Explanation
Why C — A writer chosen at random by the Options Clearing Corporation
Assignment is handled randomly by the OCC. The other choices do not reflect OCC procedures.
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