Chapter 04 · Section 4.1
Delivery
How far is the clearing house involved in delivery?
c) It assigns the obligation to a clearing member with a short position in the same series the obligation to deliver or to take delivery and oversees the delivery process.
Yes. As soon as an option holder decides to exercise, an option writer has to be selected (assigned) for exercise. The clearing house then ensures that delivery is properly settled between the two.Continue
a) It delivers the underlying asset to the option holders that chose to exercise.
b) If an option holder chooses to exercise, it assigns to the individual option writer of the same series the obligation to deliver or to take delivery.