Chapter 06 · Section 6.1

Break-even Point

Buy Calls
Market Outlook   :  Bullish
Profit Potential :  unlimited
Loss Potential   :  limited to the 
                    amount of the premium                
Breakeven Point: :

The investor breaks even when the market price equals the exercise price:

b) minus the premium.
No. This sum would be out-of-the-money and result in a loss.

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