The Manning Investment Company bought 100 Cable Corp. warrants one year ago and would like to exercise them today. The warrants were purchased for $32 each, and they expire when trading ends today (assume there is no speculative premium left). Cable Corp. common stock is selling today for $58 per share. The option price is $38, and each warrant entitles the holder to purchase two shares of stock, each at the option price. (Leave no cells blank - ensure that "0" is entered wherever required.)

a. What was the intrinsic (minimum) value of a warrant at that time? Assume Cable Corp. common stock was selling for $40 per share when the Manning Investment Company bought the warrants.

Intrinsic value $

b. What was the speculative premium per warrant when the warrants were purchased?

Speculative premium $

c. What would the Manning Investment Companys total dollar profit or loss have been had it invested the $3,200 directly in Cable Corp.s common shares one year ago at $40 and sold them today at $58 per share. (Input the answer as positive value. Round intermediate calculations. Round the final answer to the nearest whole number.)

(Click to select) Profit Loss $

d. What would the percentage rate of return be on this common stock investment? Compare this to the rate of return on the warrant investment computed when the common stock was selling for $58 per share. (Round the final answer to 2 decimal places.)

Rate of return % (Click to select) greater than return on warrant less than return on warrant