For example, the stock price is 100, the buy price is 100 (a call option with an exercise price of 100), and the sell price is 100 (a put option with an exercise price of 100).
If the stock price at maturity is 100, the return is 2+2 = 4.
If the stock price rises to 104, Call 100 exercises the right and Put 100 exercises the right, the result is 100- 104+2+2 = 0.
If the stock price falls to 96, Put 100 will exercise, but Call 100 will not exercise. The result is 96- 100+2+2 = 0.
1. Call options, also known as call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options, call options. A call option is a contract that gives the contract holder (that is, the buyer) the right to buy a specific number of specific trading objects from the opponent at an agreed price.
2. Put option is also called "put option", "put option" or "knock option", the symmetry of call option, one of the types of option trading, and the right to sell a certain security at a specified price and quantity in a certain period of time in the future. After purchasing the put option, the customer has the right to sell a certain security to the seller of the put option at the price and quantity specified in the contract within the specified date or period. Generally speaking, people are willing to buy put options only when there is a downward trend in the securities market. Because, within the validity period of the put option, only when the stock price falls to a certain extent can the buyer make a profit by exercising the option.
The breakeven point is also called guaranteed sales or guaranteed sales. Simply put, there is no loss, and the total income is equal to the total cost.
3. The function of breakeven point in management decision-making;
New product decision-making, when developing a new product, it can be seen from the break-even point that the new product should reach the minimum sales volume or minimum sales amount, so that the investment will not lose money; Expansion or contraction decision, unit selling price minus unit variable cost, also known as unit profit contribution, can decide whether to expand business or stop production or business by unit profit contribution ≥0.
From the break-even point formula, it can be found that if the unit selling price subtracts the unit variable cost, that is, the unit profit contribution, it means whether there is money to be earned for each unit product sold; If the unit selling price is far greater than the unit variable cost, not only the variable cost can be recovered, but also the fixed cost can be recovered, and finally profits can be generated.