Put and Call Payoffs Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $95 per barrel. She simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $95 per barrel.

Consider her gains and losses if oil prices are $90, $92, $95, $98, and $100. What do you notice about the payoff profile?