P17-19 (similar to) cu mesta O Homework: Homework 8 save Score: 0 of 1 pt 4 of 10 (2 complete) HW Score: 20%, 2 of 10 pts P17-19 (similar to) Common stock versus warrant investment Personal Finance Problem Tom Baldwin can invest $10,000 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $50 per share. Its Warrants, which provide for the purchase of 2 shares of common stock at 540 per share are currently selling for $10. The stock is expected to rise to a market price of 556 within the next year, so the expected theoretical value of a warrant over the next year is $20. The expiration date of the warrantis 1 year from the present a. If Mr. Baldwin purchases the stook, holds it for 1 year, and then sells it for 350, what is his total gain? (ignore brokerage fees and taxes.) b. Mr. Baldwin purchases the warrants and converts them to common stock in 1 year what is his total gain if the market price of common shares is actually 5507 ignore brokerage fees and taxes) c. Repeat parts a and b, assuming that the market price of the stock in 1 year is 34 d Discuss the two alternatives and the trade-offs associated with them a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then ses it for 556. his total gain is (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer 4 parts remaining CA COMME 3:02 PM 106F Sunny AO x 6/21/2021 6