Chapter 06 · Section 6.1

Breakeven Point

Market Outlook  : STABLE
Profit Potential: limited
Loss Potential  : limited 
Breakeven Points:

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

a) ...the high exercise price minus the premium.
• b) ...the high exercise price plus the premium.
  No. This is not one of the breakeven points. Please try again, this time entering two breakeven points.
  c) ...the high exercise price plus the premium.
  d) ...the low exercise price plus the premium.
  e) a and d
  f) a and c

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