When Owens Corning emerged from bankruptcy in $2006,$ the debtholders became the sole owners of the company. But the old

stockholders were not left entirely empty$-$handed. Suppose they were given warrants to buy the new common stock at any point in the

next seven years for $$49\mathrm{.}00$ a share. Because the stock in the restructured firm was worth about $$33\mathrm{.}75$ a share, the stock needed to

appreciate by $50\%$ before the warrants would be worth exercising. The standard deviation of Owens Corning stock was $41\%$ a year

and the interest rate when the warrants were issued was $4\%.$ Owens Corning did not pay a dividend. Ignore the problem of dilution.

Calculate the call value of Owens Corning warrants. $($Do not round intermediate calculations. Round your answer to $2$ decimal

places.$)$

Answer is complete but not entirely correct.