In an FX option written by an FX trader, the FX trader always has a contractual obligation to deliver a foreign currency to the option holder if the option holder exercises the option.

Question

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In an FX option, the FX trader (the seller or writer of the option) has the obligation to buy or sell the foreign currency only if the option holder decides to exercise the option. The obligation depends on the type of option (call or put) and not all options result in a delivery obligation for the writer; it's contingent on the holder's decision to exercise.

In an FX Option Written by an FX Trader, the FX