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31.1 Consider the following data: Number of shares outstanding : 80 million Current stock price : 80 Ratio of warrants issued to the number of outstanding shares : 0.05 Exercise price : 84 Standard deviation of continuously compounded annual returns : 0.30 Time to expiration of warrants : 3 months Risk-free interest rate per year : 8 percent What is the value of a warrant? Ignore the complication arising from dividends and /or dilution. 31.1 Consider the following data: Number of shares outstanding : 80 million Current stock price : 80 Ratio of warrants issued to the number of outstanding shares : 0.05 Exercise price : 84 Standard deviation of continuously compounded annual returns : 0.30 Time to expiration of warrants : 3 months Risk-free interest rate per year : 8 percent What is the value of a warrant? Ignore the complication arising from dividends and /or dilution