Currency option is the contracts that give the buyers the options to the rights. However, it is not obligation to buy or sell the currency at a point of time period. The buyer pays the option premium money to gain the profit from seller. The seller collects the option premium money and has duty to honor the agreement. It is the options to determine the foreign exchange market contract for the businesses. The owner has right to exchange money in one currency to another currency. It is the largest and most liquid market options in the world.     There are three different option descriptions in the currency options: in-the-money, at-the-money, and out-of-the-money. 1.  In-the-money: it is the option that would be profitable in the current exchange rate. The relative between strike price and spot rate is: Strike price is greater than spot rate. 2.  At-the-money: it is the option that would be indifference in the current exchange rate. The relative between strike price and spot rate is: Strike price is equal to the spot rate. 3.  Out-of-the-money: it is the option that would be loss (not profitable) in the current exchange rate. The relative between strike price and spot rate is: Strike price is less than the spot rate.   However, there are some different characteristics of currency options for the businesses: 1.  The buyer for the currency option should pay the option money which is similar to pay the insurance premium. 2.  The buyer for the currency option could carry out his right when the exchange rate is advantageous to oneself. However, he also could give up the right if the exchange rate is not advantageous to oneself. 3.  The seller for the currency option could collect the option money when transaction is established. 4.  Once the buyer proposes the agreement to request, the seller should have the obligation to buy or sell the currency.

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