Securities Industry Essentials SIE · Flashcards · Recall
SECURITIES INDUSTRY ESSENTIALS SIE · FLASHCARDS
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QUESTION
What is an uncovered (naked) call position?
QUESTION
What is the meaning of an option's expiration date?
QUESTION
What does it mean to be assigned on a short option position?
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ANSWER
The writer must fulfill the contract (buy or sell the underlying). Assignment requires the option writer to execute the contract by buying or selling the underlying asset at the strike price if exercised by the holder.