A call buys the base currency; a put sells it
For an option explicitly quoted on EUR/USD, a euro call gives the right to buy euros for dollars at the strike. A euro put gives the right to sell euros for dollars. This description assumes a conventional option on the exchange rate; an option on futures gives a right involving the specified futures contract.
For USD/JPY the base currency is dollars. A call on USD/JPY benefits intrinsically from a higher yen-per-dollar rate, which is a weaker yen. A call on US-dollar-priced yen futures has the opposite underlying direction. Always name the underlying when discussing a bullish or bearish view.
A euro call at expiration
Consider an illustrative right to buy €10,000 at $1.10 per euro, costing $0.02 per euro, or $200. If EUR/USD is 1.15 at expiry, the right has $500 of intrinsic value: five cents multiplied by €10,000. Subtracting the $200 premium gives $300 before fees and funding costs. At 1.10 or below, the option has no intrinsic value and the premium is lost.
On these specific assumptions, the expiration breakeven is 1.12. These numbers describe a dollar-paid premium and dollar-valued payoff; another settlement or premium currency changes the cash-flow calculation. They are not a current market quote.
A euro put at expiration
With the same €10,000 amount, a 1.10 put costing $200 has $500 of intrinsic value when the pair is 1.05. Its net result is $300 before costs, and its illustrative breakeven is 1.08. If the pair finishes above the strike, the put has no intrinsic value.
Selling either option reverses the option cash flows but adds an obligation. Premium received is the most the standalone short option can earn before costs; losses can be much larger. A call spread or put spread changes both the cost and the payoff limits.
Sources and further reading
Official references for the mechanisms and contract conventions discussed here. Follow the provider’s current contract rules when evaluating an actual product.