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Botanic Bhd issued warrants that entitle each warrant to buy one common share at RM10 and the current market price for the share is RM12.
Botanic Bhd issued warrants that entitle each warrant to buy one common share at RM10 and the current market price for the share is RM12. The warrant is priced at RM2. Calculate : a) The intrinsic value b) The warrant premium c) What will happen to the market price of the warrant if the share is traded at RM14 and the premium remains at RM2?
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