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What net profit after exercising option would be

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Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.30 sometime during the next 5 months. For $ 129.20 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $70 per share.

Problem 1: If you bought a 100-share contract for $ 129.20 and Du Pont's stock price actually changed to $ 67.06 , your net profit (or loss) after exercising the option would be ______?

Reference no: EM132856673

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