Break Even

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February 1, 2012 By: , No Comments

The break-even is the value on expiry at which no profit is realised on an option position. A 5300 FTSE Call bought at 14 means you will have a break even of 5314 (5300 + 14).

Similarly, a 5300 FTSE Put bought at 16 has a break even at 5284 (5300 – 16), as the market has to fall for the Put to make money.

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