Question
Assume you can buy a warrant for $5 that gives you the option to buy one share of common stock at $14 per share. The
Assume you can buy a warrant for $5 that gives you the option to buy one share of common stock at $14 per share. The stock is currently selling for $16 per share.
What is the intrinsic value of the warrant?
What is the speculative premium on the warrant?
If the stock rises to $24 per share and the warrant sells at its intrinsic value (without a premium), what will be the percentage increase in both the stock price and the warrant price? (assume you purchased the stock for $16 and the warrant for $5) Which offers you the greater return?
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Audit Report Chavarria Dinne And Lamey LLC Contract Deliverables Office Of Inspector U.S Department Of The Interior
Authors: United States Department Of The Interior
1st Edition
1511678526, 978-1511678520
