Exercising an option

Is exercising an assignment of an option the same. Is there any specific procedure in exercising or assigning an option.

In traditional terms of Options contract, the Option buyer has the right, but not the obligation to buy or sell underlying asset at a specified price within a specific time period. As Option buyer has the rights to exercise the contract which when exercised, the Option seller has to oblige and fulfill the terms.

So, when a Option is exercised by Option buyer, the Option seller will be assigned the obligation either to give delivery or to take delivery of underlying asset which has to be fulfilled.

In India we have European Style Options which can be exercised only on day of expiry.

On the day of expiry if your Option position expires ITM, then you will be exercising the Option and as per your position you are either obliged to take delivery of shares or give delivery of shares.

For more detailed information about how Options work, would suggest you give this module on Varsity a read.