Exercise is the action taken by the option buyer to utilize their right to buy or sell the underlying assetWhile assignment is the obligation imposed on the option seller to…
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Traders uauslly tend to use a common set of terms to describe the varying levels of an option. The terms they use are time until expiration, time value, intrinsic value,…
The profit and loss of an option position at expiration is a function of the original premium and the difference in price between the underlying and the strike price of…