Explain the mechanics of exercising and closing a five-year T-note futures call options contract with an exercise

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Explain the mechanics of exercising and closing a five-year T-note futures call options contract with an exercise price of \(\$ 120,000\) (for T-note with \(\$ 100,000\) face value) when the underlying futures contract is trading at \(\$ 125,000\). Explain the assigned writer's position and responsibility.

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