problem: Suppose you can purchase a warrant for $5 that gives you the option to buy one share of common stock at $14 per share. The stock is currently selling at 16 dollar per share.
[A] find out the intrinsic value of the warrant?
[B] find out the speculative premium on the warrant?
[C] Suppose if the stock rises to $24 per share & the warrant sells at its theoretical value without a premium, what will be the percentage raise in the stock price and the warrant rate if you bought the stock & the warrant at the rates stated above? describe the relationship.