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You bought 100 warrants one year ago and would like to exercise them today. The Warrants were purchased for $20.00 each and expire at the

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You bought 100 warrants one year ago and would like to exercise them today. The Warrants were purchased for $20.00 each and expire at the end of the day. The company is selling for $40 and the option strike price is $20 per share. Each warrant entitles the holder to purchase 3 shares at the option price. i. What will be your dollar profit or loss? ii. What is your rate of return on the investment? iil. If the stock was trading for $25 when the warrants were purchased; What was the intrinsic value at the time b. What was the speculative premium? a

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