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Suppose a financial manager buys call options on 56,000 barrels of oil with an exercise price of $95 per barrel. She simultaneously sells a put
Suppose a financial manager buys call options on 56,000 barrels of oil with an exercise price of $95 per barrel. She simultaneously sells a put option on 56,000 barrels of oil with the same exercise price of $95 per barrel. Consider her gains and losses of oil prices are $81, $78, $86, $95, and $100. What if oil futures prices are $103.22 per barrel at expiration? (Do not leave any empty spaces; input a 0 wherever it is required. Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
Market price | $81 | $78 | $86 | $95 | $100 | $103.22 |
Payoffs per barrel | $ | $ | $ | $ | $ | $ |
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