The right to sell a currency at a specified price (the strike price) within a specified period of time.
Is not obligated to exercise the option
The maximum potential loss to the owner of the put option is the price paid for the option contract.
A currency put option is said to be
In the money when the present exchange rate is less than the strike price
At the money when the present exchange rate is equals the strike price
Out of the money when the present exchange rate exceeds the strike price.
In-the-money put option will require a higher premium than options that are at the money or out of the money.