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Suppose you buy a call option on 64,000 bushels of corn with an exercise price of $51 per bushel and simultaneously sells a put option
Suppose you buy a call option on 64,000 bushels of corn with an exercise price of $51 per bushel and simultaneously sells a put option on 64,000 bushels of corn with the same exercise price of $51 per bushel. Your net payoff per bushel on these option contracts is if the market price per bushel is $49 and if the price per bushel is $55.
A) $0; $2
B) $0; -$4
C) -$2; $4
D) -$2; $0
E) - $4; $2
DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION
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