Warrant Value. Superior Clamps, lnc., has a capital structure consisting of 7 million shares of common stock and 900,000 warrants. Each warrant gives the owner the right to purchase one share of newly issued common stock for an exercise price of $25. The warrants are European and will expire one year from today. The market value of the company's shares is $165 million, and the annual variance in the returns on the firm's shares is 20%. Treasury bills that mature in one year yield a continuously compounded interest rate of 7 percent. The company does not pay a dividend. Use the Black-Scholes model to determine the value of a single warrant.