SIE practice questionmediumExercise/Assignment
When is a call seller 'assigned'?
- AAt option expiration regardless of exercise
- BAt the time of writing the option
- CWhen the call buyer exercises the contract✓ Correct answer
- DOnly if the option is out of the money
Explanation
Why C — When the call buyer exercises the contract
Assignment occurs only if the buyer exercises. Expiration with no exercise requires no action; options out of the money are unlikely to be exercised.
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