Follow both trades to assignment

You own 100 shares and sold one call against them. At expiration the stock is below the strike. What happens?

• Your shares are called away at the strike
• The call expires worthless; you keep the shares and the credit
• You must buy back the call at its intrinsic value

A cash-secured put is assigned. What happens to the cash you set aside?

• It is returned, and you keep the premium
• It pays for 100 shares per contract at the strike
• It is used to buy back the put