# Problem 10-13 (LG 10-4) You have purchased a put option on Kimberly Clark common stock. The...

###### Question:

Problem 10-13 (LG 10-4) You have purchased a put option on Kimberly Clark common stock. The option has an exercise price of $68 and Kimberly Clark's stock currently trades at$69.18. The option premium is $1.28 per contract. One option equals 100 shares of the underlying stock. a. Calculate your net profit on the option if Kimberly Clark's stock price falls to$66 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 Clark's stock price does not change over the life of the option. (Negative amount should be indicated by a minus sign.) a. Net profit b. Net profit

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