Solution-Calculate net profit on the option

Calculate net profit on the option

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Reference no: EM131632899

Question: You have purchased a put option on Kimberly Clark common 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.

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.

Reference no: EM131632899

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Calculate net profit on the option

Reference no: EM131632899

Reference no: EM131632899

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