On the expiry date of a European call currency option, the writer:
A) must buy the specified amount of the underlying currency, if put
B) may or may not buy the specified amount of the underlying currency
C) must sell the specified amount of the underlying currency, if called
D) may or may not sell the specified amount of the underlying currency

Question

Quizplus · Accepted Answer

On the expiry date of a European call currency option, if the option is exercised (called), the writer (seller) of the option is obligated to sell the specified amount of the underlying currency at the strike price. European options can only be exercised at expiration, and the term "called" refers to the exercise of a call option.

On the Expiry Date of a European Call Currency Option