Quantum Incorporated has warrants outstanding that allow the holder to purchase $1\mathrm{.}5$ shares of stock per warrant at $$30$ pershare $($exercise price$).$ Thus, each individual share can be purchased at $$30$ with the warrant. The common stock is currently selling for $$36.$ The warrant is selling for $$12.$

a$.$ What is the intrinsic $($minimum$)$ value of this warrant?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Intrinsic value

b$.$ What is the speculative premium on this warrant?

Note: Do not round intermediate calculations and round your 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.