Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additional definitions:
1. Long calls and short uncovered calls: strike price plus premium.
2. Long puts and short uncovered puts: strike price minus premium.
3. Short covered call: purchase price of underlying stock minus premium.
4. Short put covered by short stock: short sale price of underlying stock plus premium.
Nearby TermsBreak-even lease payment Break-even payment rate Break-even point Breakeven rate Break-even tax rate
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University