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Business, 07.08.2019 03:10 destineenikole17

You have purchased a put option on kimberly clark com-mon stock. the option has an exercise price of $ 95.00 and kimberly clark’s stock currently trades at $ 96.18. the option premium is $ 1.25 per contract. a. calculate your net profit on the option if kimberly clark’s stock price falls to $ 93.00 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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