The writer of a call option is obligated to sell the underlying currency to the buyer of the option if the option is exercised.

Question

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When a call option is exercised, the buyer has the right to purchase the underlying asset at the strike price. The writer/seller of the call option is then obligated to sell the underlying asset to the buyer at the strike price. In the case of currency options, this means the writer of a call option is obligated to sell the underlying currency to the buyer if the option is exercised.

The Writer of a Call Option Is Obligated to Sell