Re page 187 of Schweser book 3, “Currency Mangement: An Introduction” - PUT Spreads
So obviously we can protect an asset (currency in this case) through perfect hedging with forward contracts - where there is no downside risk or upside potential. But one of the strategies that is a cheaper alternative is to use a put spread, where you buy an OTM put at X(high) and sell a further OTM put at X(low). Sure, we’re protected down to X(high) and we reduce the initial premium cost with the written put, but if the price drops to X(low), we would be forced to buy the underlying asset from the person we sold the put to. How would this be a viable strategy? Am i missing something here?