4 Put and Call Payoffs (LO5) Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $83 per barrel She simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $83 per barrel Consider her gains and losses of oil prices are $75, $72, $80, $83, and $85 What if oil futures prices are $88 24 per barrel at expiration

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4  Put and Call Payoffs (LO5) Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $83 per barrel  She simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $83 per barrel  Consider her gains and losses of oil prices are $75, $72, $80, $83, and $85  What if oil futures prices are $88 24 per barrel at expiration

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Question: 4. Put and Call Payoffs (LO5) Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $83 per

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