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Hailey has $1,000 to invest in the market. She is considering the purchase of 50 shares of Comet Airlines at $20 per share. Her broker
Hailey has $1,000 to invest in the market. She is considering the purchase of 50 shares of Comet Airlines at $20 per share. Her broker suggests that she may wish to consider purchasing warrants instead. The warrants are selling for $10, and each warrant allows her to purchase one share of Comet Airlines common stock at $18 per share. How many warrants can Hailey purchase for the same $1,000? Note: Do not round intermediate calculations and round your answer to the nearest whole number. If the price of the stock goes to $40, what would be her total dollar and percentage return on the stock? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. At the time the stock goes to $40, the speculative premium on the warrant goes to 0 (though the market value of the warrant goes up). What would be Haileys total dollar and percentage returns on the warrant? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar
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