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Break-even point |
Also found in: Medical, Acronyms, Encyclopedia | 0.04 sec. |
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Break-even point 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. |
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? Mentioned in | ? References in periodicals archive | |
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Businesses will succeed based on how low their overhead is," says Hamilton, who recommends keeping your break-even point and your expenses low to make managing your cash flow easier. And with passenger volumes on Fly Huron North service never approaching the break-even point, the municipalities elected to terminate Sontair's Cessna service to Toronto's Pearson Airport after one year. The break-even point is when total contribution margin equals total fixed expenses. |
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Break-even point
