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Preston toy co has warrants outstanding that allow the holder to purchase a share of stock for $19 (erercise price). The common stock is currently selling for $25, while the warranty is selling for $8.75 per share.

  1. What is the intrinsic (min.) value of this warrant?
  2. What is the speculative premium on this warrant?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92072228
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