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4. Assume u have a warrant on a company with a strike of 1000. Now assume that company value is 1000 today and u have

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4. Assume u have a warrant on a company with a strike of 1000. Now assume that company value is 1000 today and u have no debt. rf is 5%. 1. Assuming the company volatility is 20% what will be the future value of the company in the good state and bad state of the world? 2. assuming u own one share of the company what will be the price of the warrant in the good and bad state of the world? 3. What is the current warrant value

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