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Problem 23-04 Put and Call Payoffs [LO4] Suppose a financial manager buys call options on 10,000 barrels of oil with an exercise price of $89
Problem 23-04 Put and Call Payoffs [LO4] Suppose a financial manager buys call options on 10,000 barrels of oil with an exercise price of $89 per barrel. She simultaneously sells a put option on 10,000 barrels of oil with the same exercise price of $89 per barrel. What are her payoffs per barrel if oil prices are $84, $85, $89, $93, and $94? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be indicated by a minus sign.) $ 84 Market price Payoffs per barrel $ 85 S 89 $ 93 $ 94
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