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Suppose a financial manager buys call options on 26,000 barrels of oil with an exercise price of $111 per barrel. She simultaneously sells a put
Suppose a financial manager buys call options on 26,000 barrels of oil with an exercise price of $111 per barrel. She simultaneously sells a put option on 26,000 barrels of oil with the same exercise price of $111 per barrel. What are her payoffs per barrel if oil prices are $104, $106, $111, $116, and $118? (Leave no cells blank - be certain to enter "0" wherever required. Negative amount should be indicated by a minus sign.) |
Market price | $104 | $106 | $111 | $116 | $118 |
Payoffs per barrel | $ | $ | $ | $ | $ |
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