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You have purchased a put option on Kimberly Clark common stock. The option has an exercise price of $ 6 8 and Kimberly Clark s
You have purchased a put option on Kimberly Clark common stock. The option has an exercise price of $ and Kimberly Clarks stock currently trades at $ The option premium is $ per contract. One option equals shares of the underlying stock.
a Calculate your net profit on the option if Kimberly Clarks stock price falls to $ and you exercise the option. Negative amount should be indicated by a minus sign. Do not round intermediate calculations.
b Calculate your net profit on the option if Kimberly Clarks stock price does not change over the life of the option. Negative amount should be indicated by a minus sign.
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