Similar to futures, options can give the holder protection against adverse price moves.
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He may also purchase goods and services whilst overseas and his credit card company has to convert those sales back into his base currency in order to charge him.
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Although option trading has more than its fair share of jargon remember the essence of all markets is that there is a buyer and a seller and both believe they have an advantage and have the potential to make money.
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At this stage it may seem that the buyer of the option has all the cards but don’t forget the seller of the option receives the money for granting the option.
The day after the expiration date an option has no value.