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.

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