Chapter 06 · Section 6.1

Breakeven Point

Market Outlook   :  BEARISH
Profit Potential : limited to 
                   the premium 
                   received
Loss Potential   : unlimited
Breakeven Point  :

• a) plus the premium.
  Yes. At any price greater than the exercise price plus the premium, the trader is losing money. When the market price equals the exercise price plus the premium, the trader breaks even. Continue
  b) minus the premium.

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