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You buy a warrant with an exercise price of 104 and one warrant will buy 8.5 shares of stock. The stock is currently at 119.50.

You buy a warrant with an exercise price of 104 and one warrant will buy 8.5 shares of stock. The stock is currently at 119.50.

A. What is the current warrant price if it is selling at a 6.5% premium?

B. If you sell the warrant when the stock goes to 121 and the warrant premium is 2.5%, what would be your HPR?

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