Feb 122020
Refers to a price at which an option’s cost is equal to the proceeds acquired by exercising the option. The buyer of a call pays a premium. His break-even point is calculated by adding the premium paid to the call’s strike price. For a put purchaser, the break-even point is calculated by subtracting the premium paid from the put’s strike price
Another great day at work and I am feeling satisfied – even a little elated! Tomorrow I’ll write some more on financial terms. Please come back every day and learn something new.
Comments?
Please leave your comments on Break-even below. Remember, every comment gets you another entry into the random prize draw for 100 GBP of Amazon vouchers.
Next winner will be selected on [date]. Comment now!