What do you notice about the payoff profile

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Reference no: EM13793204

Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $95 per barrel. She simultaneously sells a put option on 50,000 barrels of oilwith the same exercise price of $95 per barrel. Consider her gains and losses if oil prices are $90, $92, $95, $98, and $100. What do you notice about the payoff profile?

Reference no: EM13793204

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