A firm's common shares currently trade at $10/ share, and it has warrants outstanding that entitles the holder to purchase two shares at an exercise price of $9 per share. The expiry date is 3 years hence. a) Compute the intrinsic value for the warrant. (\$2) b) Show that the warrant cannot trade at a price below the intrinsic value. C) Show the % change in the intrinsic value of the warrant given a 20% change in the market price of the shares