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4. Assume your rm has 20 shares of equity, a 10-year zero-coupon debt with a maturity value of $200 and warrants for 8 shares with
4. Assume your rm has 20 shares of equity, a 10-year zero-coupon debt with a maturity value of $200 and warrants for 8 shares with a strike price of $25. Calculate the value of the debt, the share price, and the price of the warrant. Given the above, understand I have to use BSCall (A, B, sigma, r, T). How do I calculate A, B and sigma based on the given above?
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