A:

A. It is made through the OCC.



B. It must be executed by 4:30 p.m. CT the day before the expiration date.



C. It is not executed if the option expires.



D. It is determined on a random or FIFO basis.




Correct answer: D



This is true of assignment, not exercise notice.



RELATED FAQS

  1. What are the main risks associated with trading derivatives?

    Understand derivatives trading and learn about the primary risks usually associated with trading in the derivatives market, ...
  2. How can an investor profit from a fall in the utilities sector?

    Learn how an investor can profit from a fall in the utilities sector by employing speculation methods such as short selling ...
  3. What is the difference between derivatives and options?

    Learn how options are one type of derivative and how equity options derive their value from a stock, and understand other ...
  4. How are rights distributed in a rights offering?

    Learn about stock rights offerings that companies may make, and discover how the rights are distributed among the company's ...
RELATED TERMS
  1. Strike Width

    The difference between the strike price of an option and the ...
  2. Inverse Transaction

    A transaction that can cancel out a forward contract that has ...
  3. Reference Equity

    The underlying equity that an investor is seeking price movement ...
  4. Boundary Conditions

    The maximum and minimum values used to indicate where the price ...
  5. Delta-Gamma Hedging

    An options hedging strategy that combines a delta hedge and a ...
  6. Gamma Hedging

    An options hedging strategy designed to reduce or eliminate the ...

You May Also Like

Related Articles
  1. Options & Futures

    Tesla Stock Too Expensive? Trade Tesla ...

  2. Options & Futures

    Stock Options To Trade On Intraday Momentum ...

  3. Mutual Funds & ETFs

    4 Ways You Can Invest In Gold Without ...

  4. Active Trading Fundamentals

    How To Short Amazon Stock

  5. Forex Education

    Trading Forex Options: Process And Strategy

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!