Suppose a Novice Investor Buys a Call Option on 45,000

Multiple Choice

Suppose a novice investor buys a call option on 45,000 barrels of oil with an exercise price of $45 per barrel and simultaneously buys a put option on 45,000 barrels of oil with the same exercise price of $45 per barrel. Her net payoff per barrel on these option contracts is ________ if the market price per barrel is $43 and ________ if the price per barrel is $47.

A) −$2; $2
B) −$2; $0
C) $0; $2
D) $2; −$2
E) $2; $2