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Suppose a financial manager buys call options on 13,000 barrels of oil with an exercise price of $74 per barrel. She simultaneously sells a put
Suppose a financial manager buys call options on 13,000 barrels of oil with an exercise price of $74 per barrel. She simultaneously sells a put option on 13,000 barrels of oil with the same exercise price of $74 per barrel. What are her payoffs per barrel if oil prices are $66, $70, $74, $78, and $82? (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign.) |
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