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An option will likely be exercised if it's while in the option owner's best interest to do so, meaning it's best to take or to close a position in the underlying security with the strike price rather than within the current market price.

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The loan inside the margin account is collateralized by the stock, and When the value of your stock drops below a particular level, the proprietor will be asked to deposit marginable securities and/or cash into the account or to sell/close out security positions within the account.

The uncertainty and potential exposure when a stock price plus the strike price will be the same at expiration is called pin risk. The best way to stay away from it is actually to close the position before expiration.

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