Banana Inc. plans to raise $3,800,000 via a rights offering. Prior to the rights offering, the company has 600,000 shares of common stocks outstanding and stock price is $31 per share. Banana Inc.s underwriter has set a subscription price of $20 per share and will charge Banana a five percent spread as underwriting fee. What is the ex-rights stock price? (2 points) What is the fair value of one right (1 point)? If the market value of one right is $1, how to profit from the market pricing of rights (suppose the investor does not hold the stock previously, describe the investors trading strategy, and calculate the dollar profit from this strategy) (2 points)?