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You can buy a warrant for $5.00 that gives you the option to buy one share of common stock at $15.50 per share. The
You can buy a warrant for $5.00 that gives you the option to buy one share of common stock at $15.50 per share. The stock is currently selling at $13.00 per share. (Leave no cells blank - ensure that "0" is entered wherever required.) a. What is the intrinsic (minimum) value of the warrant? (Round the final answer to 1 decimal place.) b. What is the speculative premium on the warrant? (Round the final answer to 2 decimal places.) C. a. a. Intrinsic value O b. a. Intrinsic value a. Intrinsic value $ 0.0 b. Speculative premium $5.00 $ 1.0 b. Speculative premium $4.00 $ -1.0 b. Speculative premium $4.00 O d. a. Intrinsic value $ 1.0 b. Speculative premium $6.00 e. a. Intrinsic value $ 0.0 b. Speculative premium $7.00
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