What is the break even point for an option?

Break-even point (BEP) The break-even point is also known as zero profit point, break-even point, break-even point, profit and loss critical point, profit and loss divergence point, and income turning point. Usually refers to the output when the total sales revenue is equal to the total cost (the intersection of the sales revenue line and the total cost line). With the bounds of the break-even point, when the sales revenue is higher than the break-even point, the company makes a profit, and vice versa, the company loses.

The break-even point can be expressed in terms of sales volume, that is, the sales volume at the break-even point; It can also be expressed in terms of sales, i.e., sales at the break-even point.

The break-even point is the point at which the sales revenue is equal to the cost of production, expressed graphically. When the income is below the break-even point, it is a loss, and vice versa, it is a profit. Calculated in physical units:

Break-even point = fixed cost (sales revenue per unit of product - variable cost per unit of product) Calculated by amount: break-even point = fixed cost (1 - variable cost sales revenue) = fixed cost contribution gross profit ratio break-even point (also known as break-even point, break-even point), it refers to the business volume (output or sales volume) that must be achieved by the enterprise in a state of no win or loss, which is a very important quantitative boundary in investment or operation. Break-even analysis is based on the analysis of the relationship between operating income, variable costs, fixed costs, and earnings.

1.Fixed cost: Refers to the part of the cost that does not change with the change in production. The fixed costs of enterprise operation and production mainly include depreciation expenses of fixed assets.

2.Variable cost: refers to the part of the cost that changes with the increase or decrease of production. The variable costs of business operation and production generally include materials, wages, etc. Variable cost can be expressed as the product of variable cost per unit of output and product output.

3.Total cost: The sum of fixed and variable costs. The relationship between total cost, fixed cost, and variable cost is as follows:

C=F+V=F+V Q C is the total cost, F is the fixed cost, V is the variable cost, V is the variable cost per unit of production, and Q is the product output.

The break-even point is usually calculated by the total revenue of a company equal to the product of the selling price of the unit product and the output of the product. When breakeven is reached, the total revenue is equal to the total cost. There is the following equation:

VQ+F=PQV represents the variable cost per unit of production, Q represents the output, F represents the fixed cost, and P represents the selling price of the unit product.

The following equation is obtained by transforming the equation:

q=f (p v) This equation is the formula for calculating the output at the break-even point. where q is the minimum output at breaking even.

The other one is neither profit nor loss.

If, at expiration, the call option exercising** 280 cents makes a profit of 4 cents, Wheat** falls to 280 cents or less and the profit is exactly 4 cents, and the wheat** rises to 290 cents or more and the buy and sell option loses a total of 4 cents, then both options will be exercised; bushels (280 cents from the call option seller**, if the option combination expires can get 4 cents at this time; bushels, so; When the expiration date spot ** is at 284 cents, the 280-cent call option will be exercised, so neither option will be exercised, so this just balances the difference between the option buy and sell at 284 cents, then the profit or loss is the option spread.

4 cents . In order to break even; bushel, then just 10 cents in profit, that's the breakeven point, selling to the other side of the call option at 290 cents in the market). Therefore, there will be no break-even point, then this point is the break-even point, and there will be no break-even point.

Then the break-even point must be between 280 and 290 cents.

If the time of expiration, and the holder of the 290-cent call option does not exercise, the total gain is 6 cents bushel.

The break-even point of a call option depends on how much you paid to buy the option, and the greater the cost, the greater the deviation from the exercise**. It costs you money to buy this option, and you have to spend money if you don't have the option at that timeAfter all, he gives you a choice, that is, you can exercise this right or not. <>

What does it mean to buy a call option? It's that I'm optimistic about the company's ** rise, I think it will be able to ** in the future, and I will make money if it ** is **. But it's not that I'm going to buy this company now, because it's not necessarily**, if the company's **call option, when I bought it, I bought it for three yuan a share, and I paid the three yuan to the platform trader, and the company's **** is now 20 yuan, and the exercise ** I set is 20 yuan,I am sure that the exercise period is half a year, and if it rises above 20 yuan in the next six months, then I can exercise it, theoretically.

But in fact, in order to get this call option, I spent three dollars at a price that has to be considered, that is to say, I have to find a point for me to buy the company's **, plus the ** of the call option I bought is equal to the **** I actually bought, so that I don't make money and don't lose money, which is called the call option breakeven point. I determined that the exercise ** was 20 yuan, and my ** call option cost three yuan, that is, when he grew to 23 yuan, I bought neither profit nor loss, and I would not exercise the option because it was inappropriate and did not make money. Unless it is said that this company really has no room for the future, I will not be able to rise if it rises to 23There is no way, in order to avoid the loss of these three dollars, I may also exercise my rights.

Under normal circumstances, when the call option is actually exercised, it is when the price difference is generated, that is, when the fair value of the option is positive. If it rises to 30 yuan, then I still use 20 yuan ****, even if I add the cost of the call option itself, am I still net 7 yuan per share**? It's going to go up to more than 30 dollars, so it's even betterIt's just that if he were **, I might admit the loss of these three dollars, and I wouldn't exercise my rights.

The profit and loss of the call option = the underlying ** - (execution** + opening premium), when this value is equal to 0, the breakeven is achieved. The higher the ** of the underlying asset, the more beneficial it is to the party holding the call option.

The up-and-down trend of ** should be analyzed, and a basic average should also be looked at. In this way, you will be able to find the break-even point of the call option.

At this time, it is necessary to observe, and you can also find a more stable point according to the previous sale or **of**, and then you can also ** the ** and trend after this **ticket.

When x<55, the break-even point = 55-x-1-2=0, that is, 52,5560, the break-even point = x-60-2-1=0, that is, 63 yuan.

The break-even point, when the underlying ** of the option reaches this point, ** or sell the option to achieve breakeven. The break-even point for a put option should be, Strike ** - Premium. About the purchase and sale of options.

One is that as a buyer of an option (whether a call or a put option) has only rights and no obligations. The risk is limited (the maximum loss is the premium), but the profit is theoretically unlimited.

The second is that as the seller of the option (whether it is a call option or a put option), it only has obligations but no rights, and the risk is theoretically unlimited, but the return is obviously limited (the maximum return is the premium).

Third, the buyer of the option does not need to pay a margin, and the seller must pay a margin as a financial guarantee that must perform the obligation.

The balance point is that when the underlying stock ** is how much money it gets, it will not lose or earn, and the balance point = exercise** - premium.

Answer: B Analysis: This title is bullish put option vertical arbitrage. The maximum return is: 14-11=3, and the maximum risk is 280-250-3=27, so the break-even point is: 250+27=280-3=277.

Therefore, the calculation of the break-even point can assume that the break-even point is x, and 280 x 290, then it is clear that if the hold expires, the call option with low strike ** will be executed, and the call option with high strike ** has no intrinsic value and time value, so it can be made (x-280)+(11-15)=0, and the solution of the equation can directly obtain x=284

1) Option premium = 50,000 5 million euros = USD Euro break-even point =

2) A: 5 million euros $10,000 = $5.95 million.

B: €5 million $10,000 = $10,000.