Suppose a Financial Manager Buys Call Options on 45,000 Barrels

Multiple Choice

Suppose a financial manager buys call options on 45,000 barrels of oil with an exercise price of $30 per barrel. She simultaneously sells a put option on 45,000 barrels of oil with the same exercise price of $30 per barrel. Her net profit per barrel is _____ if the price per barrel is $29 and _____ if the price per barrel is $35.

A) -$5; $1
B) -$1; $0
C) $0; -$1
D) $0; $1
E) -$1; $5