The party that purchases a currency pair call option may also decide to settle for an execution or to sell out the option on or before the date of expiration. There is a strike price of the option that shows a particular exchange ratio for the given pair of currencies.
When the actual price of the currency pair is more than the strike price, the call holder earns a profit. It is said to execute the option by buying the base and selling the quote at a profitable term. A put buyer always bets on the denominator or quote currency appreciating against the numerator or the base currency.
