Question: Put and Call Payoffs [ 1 . 0 4 ] Suppose a financial manager buys call options on 5 0 , 0 0 0 harrels
Put and Call Payoffs Suppose a financial manager buys call options on harrels of oil with an exercise price of $ per barrel. She simultaneous, sells a put option on barrels of oil with the same exercise price of pet barrel. Consider her gains and losses if oil prices are $ and What do you notice about the payoff profile?
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