You have purchased a put option on Kimberly Clark com- mon stock. The option has an exercise

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You have purchased a put option on Kimberly Clark com- mon stock. The option has an exercise price of $65.00 and Kimberly Clark's stock currently trades at $66.18. The option premium is $1.25 per contract. (LG 10-4)

a. Calculate your net profit on the option if Kimberly Clark's stock price falls to $63.00 and you exercise the option.

b. Calculate your net profit on the option if Kimberly Clark's stock price does not change over the life of the option.

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 07:01 AM

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You have purchased a put option on Kimberly Clark com- mon stock. The option has an exercise

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Financial Markets And Institutions

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