1/ Jacobs and Company has warrants outstanding, which are selling at a $1.00 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $27. If the common stock currently sells for $30, what is the warrant price? (Round your answer to 2 decimal places.)

$4.00

$8.00

$7.00

$5.00

2/ Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $13.00 per share. The intrinsic or minimum value of one Sen warrant is (Round your answer to 2 decimal places.)

$0

$19.50

$13.00

$18.00

3/ Rocky Scholes Swimwear's warrant is trading for $10.00. The warrant carries the option to purchase a half share of common stock for $50. What is the speculative premium if the stock price is $65?

$1.00

$2.50

$5.00

$15.00