Put and Call Pay-offs Suppose a financial manager buys call options on 35,000 barrels of oil with
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Put and Call Pay-offs Suppose a financial manager buys call options on 35,000 barrels of oil with the same exercise price of £120 per barrel. She simultaneously sells a put option on 35,000 barrels of oil with the same exercise price of £120 per barrel. Consider her gains and losses if oil prices are £115, £120, £125, £130 and £135.
What do you notice about the pay-off profile?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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