Currency Options – Amount choose to be hedged

Hi John,

When review the currency options questions from past exam papers, I found while choosing the amount to be hedged, in some cases, they chose to over-heged while some others under hedged.

my understanding is rounding the contracts No. to the closest one. ( say 117.89 to 118 and 117.05 to 117 ) and regardless of the option is to pay or receive.

or is there different rules for payment and receipt? ( say payment over-hedged and receipt under hedged, regardless of the rounding rule.)

many thanks in advance!