Payoff per barrel=MAX(S-92,0)-MAX(92-S,0)
Market price | 85 | 89 | 92 | 95 | 99 |
Payoffs per barrel | -7 | -3 | 0 | 3 | 7 |
Suppose a financial manager buys call options on 15.000 barrels of oil with an exercise price...
Suppose a financial manager buys call options on 10,000 barrels of oil with an exercise price of $89 per barrel. She simultaneously sells a put option on 10,000 barrels of oil with the same exercise price of $89 per barrel. What are her payoffs per barrel if oil prices are $84, $85, $89, $93, and $94? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be indicated by a minus sign.) $ 84...
Suppose a financial manager buys call options on 17,000 barrels of oil with an exercise price of $69 per barrel. She simultaneously sells a put option on 17,000 barrels of oil with the same exercise price of $69 per barrel. What are her payoffs per barrel if oil prices are $62, $66, $69, $72, and $76? (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign.)
Suppose a financial manager buys call options on 24,000 barrels of oil with an exercise price of $119 per barrel. She simultaneously sells a put option on 24,000 barrels of oil with the same exercise price of $119 per barrel. What are her payoffs per barrel if oil prices are $103, $108, $119, $130, and $135? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be indicated by a minus sign.) 130 $...
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 if oil prices are $75, $78, $83, $88, and $91. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a...
Suppose a financial manager buys call options on 52,000 barrels of oil with an exercise price of $87 per barrel. She simultaneously sells a put option on 52,000 barrels of oil with the same exercise price of $87 per barrel. Consider her gains and losses if oil prices are $77, $74, $82, $87, and $90. What if oil futures prices are $93.26 per barrel at expiration? (Do not leave any empty spaces; input a 0 wherever it is required. Negative...
Suppose a financial manager buys call options on 54,000 barrels of oil with an exercise price of $91 per barrel. She simultaneously sells a put option on 54,000 barrels of oil with the same exercise price of $91 per barrel. Consider her gains and losses if oil prices are $79, $76, $84, 991, and $96. What if oil futures prices are $99.28 per barrel at expiration? (Do not leave any empty spaces; input a 0 wherever it is required. Negative...
Suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $93 per barrel. She simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $93 per barrel. Consider her gains and losses if oil prices are $87, $90, $93, $96, and $99.
Problem 23-04 Put and Call Payoffs (L04] Suppose a financial manager buys call options on 22,000 barrels of oil with an exercise price of $72 per barrel. She simultaneously sells a put option on 22,000 barrels of oil with the same exercise price of $72 per barrel. What are her payoffs per barrel if oil prices are $64, $67, $72, $77, and $80? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be...
23 for Credit Question 1 (of 3) value: 33.33 points Suppose a financial manager buys call options on 13,000 barrels of oil with an exercise price of $74 per barrel. She simultaneously sells a put option on 13,000 barrels of oil with the same exercise price of $74 per barrel. What are her payoffs per barrel if oil prices are $68, $71, $74, $77, and $80? (Leave no cells blank - be certain to enter "0" wherever required. Negative amount...
9. The current barrel of oil price is equal to 47.23 USD/barrel. We expect that the price will decrease to 46.89 USD/barrel. The bank offers call and put option with strike price equal to 47.07 USD/barrel. The option premium is equal to 0.12 USD/barrel. The one option contract contains 100 barrels. Investor has 6 000 USD. How many and what options will you purchase? What will be result of the operation if your expectations will prove to be true?