As a junior financial analyst at Houliahn Lokey, you are analyzing how the stock warrants issued by a firm will impact the value of the firm. Suppose that a firm is going to raise the capital by issuing 100 shares of stock and 100 shares of warrants. The warrants will have the right to buy the share at $1.5 per share. The value of the firm now is $200. The value of the firm next year will be either $240 when demand is high or $160 if the demand is low. The one-year interest rate is 9% a. What is the risk neutral probability of up movement? b. What is the market price of the stock per share now? c. What is the market price of the warrant per share now? (sample answer: 15.60%) (sample answer: $5.60) (sample answer: 55.60)