26 Warrant Value General Modems has five-year warrants that currently trade in the open market. Each warrant

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26 Warrant Value General Modems has five-year warrants that currently trade in the open market. Each warrant gives its owner the right to purchase one share of equity for an exercise price of £35.

(a) Suppose the equity is currently trading for £33 per share. What is the lower limit on the price of the warrant? What is the upper limit?

(b) Suppose the equity is currently trading for £39 per share. What is the lower limit on the price of the warrant? What is the upper limit?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 05:04 PM

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26 Warrant Value General Modems has five-year warrants that currently trade in the open market. Each warrant

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Corporate Finance

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