Home >  Term: break-even point
break-even point

Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additional definitions: 1. Long calls and short uncovered calls: strike price plus premium. 2. Long puts and short uncovered puts: strike price minus premium. 3. Short covered call: purchase price minus premium. 4. Short put covered by short stock: short sale price of underlying stock plus premium.

0 0

Penulis

  • Jessehe
  •  (V.I.P) 32013 poin
  • 40.13% positive feedback
© 2024 CSOFT International, Ltd.