Assertion (A) : The liability of the option buyer is limited in the currency options market.

Reason (R) : Option buyer need not exercise the option if the exchange rate is not favourable for him.  

1
(R) is correct and (A) is wrong
2
(A) is correct and (R) is wrong. 
3
Both (A) and (R) are correct.  
4
Both (A) and (R) are wrong. 

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