Chapter 06 · Section 6.1

Breakeven Point

Market Outlook   :  STABLE
Profit Potential :  practically 
                    unlimited
Loss Potential   :  limited to 
                    the sum of
                    the premiums
Breakeven Points :

The breakeven points occur when the market price at expiration equals the exercise price...

b) ... minus the premium
No. The straddle has two breakeven points, one for the call and one for the put. One simply calculates the breakeven for each, taking into account that two premiums are received.
c) a and b

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