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Suppose a financial manager buys call options on 68,000 barrels of oil with an exercise price of $119 per barrel. She simultaneously sells a put
Suppose a financial manager buys call options on 68,000 barrels of oil with an exercise price of $119 per barrel. She simultaneously sells a put option on 68,000 barrels of oil with the same exercise price of $119 per barrel. Consider her gains and losses of oil prices are $93, $90, $98, $119, and $122. What if oil futures prices are $125.35 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 $93 $90 $98 $119 $122 $125.35 Payoffs per barrel $ $ $ $ $ $
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