Hanson Toy Co. has warrants outstanding that allow the holder to purchase 2.0 shares of stock per warrant at $28 per share (option price). The common stock is currently selling for $38, while the warrant is selling for $24.00 per share. (Leave no cells blank - ensure that "O" is entered wherever required.) a. What is the intrinsic (minimum) value of this warrant? (Round the final answer to 2 decimal places.) Intrinsic value $ b. What is the speculative premium on this warrant? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Speculative premium c. What should happen to the speculative premium as the expiration date approaches? $ O Speculative premium should decrease. O Speculative premium should increase. O Speculative premium should not change.

Hanson Toy Co. has warrants outstanding that allow the holder to purchase 2.0 shares of stock per warrant at \\( \\$ 28 \\) per share (option price). The common stock is currently selling for \\( \\$ 38 \\), while the warrant is selling for \\( \\$ 24.00 \\) per share. (Leave no cells blank - ensure that \" \\( O \\) \" is entered wherever required.) a. What is the intrinsic (minimum) value of this warrant? (Round the final answer to 2 decimal places.) Intrinsic value \\( \\$ \\) b. What is the speculative premium on this warrant? (Do not found intermediate calculations. Round the final answer to 2 decimal places.) Speculative premium c. What should happen to the speculative premium as the expiration date approaches? Speculative premium should decrease. Speculative premium should increase. Speculative premium should not change