Exercise: Long holders of options hold the right to exercise the terms of the contract purchased. (us.etrade.com)
Assignment: Notification to an options seller that a long holder of an option has exercised their rights, and they have been randomly selected to fulfill their obligation of the contract they have sold. (us.etrade.com)
If the business does well and the company's stock rises, the holders of the options share in the financial benefits. (marsdd.com)