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[Music] if youre like most people you probably drive a car regularly yet you likely have no idea whats happening under the hood to make it run and thats how you might be feeling about exercising and being assigned on options you understand conceptually what these terms mean but how does the process actually work well thats what were going to tackle here with some help from our options traders jack the buyer and sarah the seller lets say jack buys one call option for a fictional abc1 corp stock at a strike price of 50 expiring in a month that gives him the right to purchase 100 shares of the underlying stock at the strike price on or before the expiration date and on the other side lets say sarah sells that very same call she earns a premium on the sale of the option itself but in exchange shell also be obligated to sell 100 shares of the underlying stock at the strike price if shes assigned now lets imagine that abc1 corp stock climbs from 45 dollars per share to 55 putting j
