Assignment

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DEFINITION of 'Assignment'

1. The transfer of an individual's rights or property to another person or business.

2. A notice received by an option writer stating that the option sold has been exercised by the purchaser of the option.

INVESTOPEDIA EXPLAINS 'Assignment'

1. Essentially, an assignment is the transfer of ownership. An example of an assignment is when a person sells his or her car, thereby transferring the title to another.

2. When assigned, the option writer has an obligation to complete the requirements of the option contract. If the option was a call (put) option, then the writer would have to sell (buy) the underlying security at the stated strike price.

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