Assume you can buy a warrant for $5 that gives you the option to buy one share of common stock at $18 per share. The stock is currently selling at $22 per share. (Leave no cells blank - ensure that "0" is entered wherever required.)

a. What is the intrinsic (minimum) value of the warrant?

Intrinsic value $

b. What is the speculative premium on the warrant?

Speculative premium $

c. If the stock rises to $30 per share and the warrant sells at its theoretical value without a premium, what will be the percentage increase in the stock price and the warrant price if you bought the stock and the warrant at the prices stated above? (Round the final answer to 2 decimal places.)

Increase in stock price	%
Increase in warrant price	%