When you sell a put option on euros, you incur an obligation to buy euros at the option of the purchaser of the contract.

Question

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Selling a put option means you are giving someone else the right to sell the underlying asset (in this case, euros) to you at a predetermined price (the strike price) within a specific time frame. If the buyer decides to exercise this right, you are obligated to buy the euros at the strike price, even if the market price is now lower.

When You Sell a Put Option on Euros, You Incur