What are the disadvantages of hedging with currency options as opposed to forward contracts? Which one would be the best choice.

I. A disadvantage of currency options is that they provide the right to buy or sell only a specified amount of a particular currency while a forward contract does not limit the amount of currency available for purchase or sale.

II$.$ A disadvantage of currency options is that a price $($premium$)$ is paid for the option itself while the only payment by a firm using a forward contract is the exchange of a currency as specified in the contract.

III. A disadvantage of currency options is that they can be used only if the exercise price of a specified currency is lower than the spot rate of this currency while a forward contract can be used regardless of the spot rate of a currency