An option to buy is a call. An option to sell is a put. The
party having the contractual right to buy or sell is the holder
of the option. From the perspective of the holder, the option
contract is referred to as a purchased option. The party- that
grants the holder this contractual right is the writer of the
option. From the perspective ofthe writer, the option contract is referred to as a written option. (A corporation that has
granted an employee a stock option has written a call option;
the employee is the holder ofthe call option.) Each party has
conflicting desires concerning the future movement of the
exchange rate for the currency involved.