Question
Spring Fields has warrants outstanding that allow the holder to purchase one commonshare at$15 per share (option price). The common stock is currently selling for
Spring Fields has warrants outstanding that allow the holder to purchase one commonshare at$15 per share (option price). The common stock is currently selling for $22. The warrant is selling for $10.55.(Leave no cells blank - ensure that "0" is entered wherever required.)
a.What is the intrinsic (minimum) value of this warrant?
Intrinsic value$
b.What is the speculative premium on this warrant?(Round the final answer to 2 decimal places.)
Speculative premium$
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
