Kira Norice, a private investor, expects Sisco stock to decrease from its current price of...
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Accounting
Kira Norice, a private investor, expects Sisco stock to decrease from its current price of $96 per share. Thus, Norice purchases a put option on Sisco stock with an exercise price of $93 for a premium of $3 per share. Assume instead that the price of Sisco stock is $88 just before the expiration date. Norice's gain on her transaction would be $________ per share, assuming she purchases Sisco shares in the open market and then exercises her option. a. 8 b. 3 c. 5 d. 2 e. None of these choices are correct.
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