1. The process of meeting the terms of a written option contract when notification of assignment has been received. In the case of a short equity call, the writer must deliver stock and in return receives cash for the stock sold. Conversely, the writer of a short equity put, the writer pays cash and in return receives the stock.
  2. The tender and receipt of the actual commodity, the cash value of the commodity, or of a delivery instrument covering the commodity used to settle a futures contract.

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