Series 7 Exam For Dummies by Steven M. Rice

Author:Steven M. Rice [Rice, Steven M.]
Language: eng
Format: epub, pdf
ISBN: 9781119545033
Publisher: Wiley
Published: 2019-04-02T00:00:00+00:00

Because this investor paid $47 per share for the stock and received back $4 per share for selling the option, this investor would need to receive another $43 per share to break even.

Here’s how to find the break-even point for stock and options:

If the investor purchased twice (bought the stock and bought a protective put option), add the stock price and the premium.

If the investor sold twice (sold short the stock and sold an option), add the stock price and the premium.

If the investor had one buy and one sell (for example, bought the stock and sold the option or sold short the stock and bought the option), subtract the premium from the stock price.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.