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Break even point

The financial definition for 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.




Similar Matches

Break even analysis

Break even analysis
An analysis of the level of sales at which a project would make zero profit.


Break even lease payment

Break even lease payment
The lease payment at which a party to a prospective lease is indifferent between entering and not entering into a lease arrangement.


Break even payment rate

Break even payment rate
The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate that will produce the same cash flow yield (CFY) as that of the benchmark coupon; and for coupons lower than the benchmark coupon the lowest prepayment rate that will do so.


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Break even point
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