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| Definitions by InvestorWords.com |
| What is...? |
| break-even point The price at which an option's cost is equal to the proceeds acquired by exercising the option. For a call option, it is the strike price plus the premium paid. For a put option, it is the strike price minus the premium paid. Also, the price at which a securities transaction produces neither a gain nor a loss. Also, the volume of sales at which a company's net sales just equals its costs. see also point. |
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