The obligation placed on an option seller to fulfil the contract when the buyer chooses to exercise it.
Assignment occurs when the seller (writer) of an option is required to fulfil the terms of the contract because the buyer has chosen to exercise it. A call writer who is assigned must deliver (sell) the underlying asset at the strike price, while a put writer who is assigned must buy the underlying asset at the strike price. In India, index options are typically cash-settled, so assignment results in a cash debit or credit rather than physical delivery.
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