17-16 Warrant values Kent Hotels has warrants that allow the purchase of three shares of its outstanding common stock at $50 per share. The common stock price per share and the market value of the warrant associated with that stock price are shown in the table. a. For each of the stock prices given, calculate the intrinsic warrant value. b. Graph the intrinsic and market values of the warrant on a set of axes with pershare common stock price on the x-axis and warrant value on the y-axis. c. Assume that the warrant value is $12 when the market price of common stock is $50. Does that contradict or support the graph you have constructed? Explain. d. Specify the area of warrant premium. Why does this premium exist? e. If the expiration date of the warrants is quite close, would you expect your graph to look different? Explain