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Jacobs and Company has warrants outstanding, which are selling at a $2.00 premium above intrinsic value. Each warrant allows its owner to purchase one share

Jacobs and Company has warrants outstanding, which are selling at a $2.00 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $26. If the common stock currently sells for $31, what is the warrant price? (Round your answer to 2 decimal places.)

$10.00

$8.00

$11.00

$7.00

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