You have purchased a put option on Kimberly Clark common stock. The option has an exercise price of $78 and Kimberly Clarks stock currently trades at $79.18. The option premium is $1.35 per contract. Assume that 100 shares are traded.

a.	Calculate your net profit on the option if Kimberly Clarks stock price falls to $76 and you exercise the option. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations.)

Net profit

$

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.)

Net profit

$