| Break-Even
Point - BEP |
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The point at which gains equal losses.
Or, the market price that a stock must reach for an option buyer to
avoid a loss if he - exercises. For a call, it is the strike price
plus the premium paid. For a put, it is the strike price minus the
premium paid.
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For
businesses, reaching the break even point is the first major step
towards profitability. |
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Dictionary
