?1. A company adopted a shareholder rights plan, where (i) each shareholder owns special warrants, the number of which equals the number of shares they own, (ii) these warrants can be exercised when a raider acquires 30 percent or more of company shares, and (iii) each warrant grants the right to purchase five newly issued shares at the strike price of $0. Compute the dollar loss to the raider if it acquires 30 percent of company shares. This firm has a market capitalization of $1 billion.

1. $233 million

2. $100 million

3. $150 million

4. $200 million