Calls And Puts Call options when bought allow you to buy an asset at a fixed price (strike price) on or before a specific exercise date.
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This will give the individual who bought the put option the right to sell that option at and agreed price (strike price) on or before a specific date (expiration date).
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They may decide that the Euro will appreciate against the US Dollar and take what is called a long position in Euro.
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The insurance company on the other hand has the obligation to pay you should you should you exercise that right in exchange for accepting your premium each month.
The day after the expiration date an option has no value.