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please help !! Hanson Toy Co. has warrants outstanding that allow the holder to purchase 2.0 shares of stock per warrant at $20 per share
please help !! Hanson Toy Co. has warrants outstanding that allow the holder to purchase 2.0 shares of stock per warrant at $20 per share (option price). The common stock is currently selling for $30, while the warrant is selling for $22.50 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? Speculative premium should decrease. Speculative premium should increase. Speculative premium should not change
please help !!
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