Open TradingFlowExpiration: exercise, assignment and settlement
Tell closing from exercise and assignment, settle physical and cash contracts, and spot expiry-day surprises.
Builds on Lesson 3, Trading an option: from chain to order. That lesson listed the ways a position ends; this one shows what exercising early gives up, how share and cash settlement differ, and what can surprise you on expiry day.
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Apply what you just explored to a guided case with feedback, then to a new case on your own. It's optional: moving on and your study mark don't depend on it.
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Interactive steps are optional practice. Continue whenever you are ready; moving on does not mark this lesson as studied.