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RZ Berhad has a warrant that allows purchasing two shares of common stock at RM23 per share. The warrant is currently selling at RM14 and
RZ Berhad has a warrant that allows purchasing two shares of common stock at RM23 per share. The warrant is currently selling at RM14 and the common share is priced at RM29.
1. What is the theoretical value of the warrant?
2. What is the warrant premium?
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