Intermediate

Assignment & Expiration Quiz

By Yojana Mandon · Updated June 2026 · 2 min read · Risk disclaimer

Assignment and expiration trip up a lot of new traders. These six questions make sure you know what happens when an option reaches the end of its life.

Pick an answer for each question — your score appears at the end.

1. Question 1Assignment means the option SELLER must…

   Pay a feeFulfill the contract by buying or selling the stockCancel the tradeRoll automatically

   When assigned, the writer must deliver: sell stock (call) or buy stock (put).

2. Question 2American-style options can be exercised…

   Only at expirationAny time before expirationOnly on FridaysNever

   American-style options allow exercise at any point up to expiration.

3. Question 3Early assignment of a short call is most likely…

   Right after you sell itJust before an ex-dividend dateAt randomNever

   Holders exercise in-the-money calls early to capture an upcoming dividend.

4. Question 4An in-the-money option at expiration is typically…

   Left to expire worthlessAutomatically exercisedCancelledConverted to cash only

   Brokers auto-exercise options that finish in the money.

5. Question 5To avoid assignment you can…

   Ignore itClose or roll the position before expirationWait and hopeDouble the size

   Closing or rolling before expiration removes the assignment risk.

6. Question 6European-style options can be exercised…

   Only at expirationAny timeWeeklyNever

   European-style options (e.g. many index options) exercise only at expiration.

Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy Policy · Terms & Conditions.