Question

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.)

Answer 1

For call buyer
oil price	Exercise price	Status	Profit/Loss	Barrel	Value
$62	$69	Not Excise	($7)	17000	($119,000)
$66	$69	Not Excise	($3)	17000	($51,000)
$69	$69	Indifferent	$0	17000	$0
$72	$69	Exercise	$3	17000	$51,000
$76	$69	Exercise	$7	17000	$119,000
For Put Seller
oil price	Exercise price	Status of put buyer	Profit/loss to put seller	Barrel	Value
$62	$69	Exercise	($7)	17000	($119,000)
$66	$69	Exercise	($3)	17000	($51,000)
$69	$69	Indifferent	$0	17000	$0
$72	$69	Not Exercise	Profit Will be Option Premium Received	17000
$76	$69	Not Exercise	Profit Will be Option Premium Received	17000