What Is The Meaning Of Assignment

What Is The Meaning Of Assignment-44
This concept exists in a variety of business transactions.For investors and traders the most prominent example occurs when an option contract is assigned, the option writer has an obligation to complete the requirements of the contract.

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The way the options market works, the corresponding seller of the option is not determined when a buyer opens a option trade, but only at the time that an option holder decides to exercise their right to buy stock.

So an option seller with open positions is matched with the exercising buyer via automated lottery.

But there are other types business transactions known as an assignment.

Assignment means transferring some or all property rights and obligations to another person through a written agreement.

A single variable can hold various values at different times based on its life span and scope.

When a variable which is already assigned a value is assigned another value, the new assignment value overwrites the previously assigned value.

An assignment is a statement in computer programming that is used to set a value to a variable name.

The operator used to do assignment is denoted with an equal sign (=).

The randomly selected seller is then assigned to fulfill the buyer's rights. Once assigned the writer (seller) of the option will have the obligation to sell (if a call option) or buy (if a put option) the designated number of shares of stock at the agreed upon price (strike price).

For instance, If the writer sold calls then he/she would be obligated to sell stock, and the process is often referred to as having the stock called away.


Comments What Is The Meaning Of Assignment

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