Question 5 options: Micah Bell has $1,512 to invest in the market. He is considering buying 54 shares of Emerald Ranch Corporation at $28 per share. His broker suggests that he purchase Emerald Ranch Corp warrants instead. The warrants are selling for $9 and each warrant allows him to purchase one share of Emerald Ranch common shares at $23 per share.

a) How many warrants can Mr. Bell purchase? Round to the nearest warrant.

b) Calculate the intrinsic value of the warrant. Round to 2 decimal places.

c) Calculate the speculative premium of the warrant. Round to 2 decimal places.

d) If the price of the stock goes to $35, what would be his percentage return if he had purchased the warrant at $6, exercised the warrant and sold the stock at $35? Round to 2 decimal places?

e) Based on the original data, what if the market price was originally $21, what would the speculative premium have been? Please provide a negative (if required). Round to 2 decimal places.