13.8 Good Ground wants to insert a safety covenant that provides that if Blindex’s stock price falls below $5 at any time during the life of the warrants, the warrants expire and Good Ground receives a $0.73 rebate per warrant. What is the value of this knockout warrant?

What is the value of the knockout warrant plus the rebate? (Hint: Use the knockout option module in Financial Options Calculator but adjust output for dilution as in Appendix A, Section A.9.)