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The People Power Corp. currently has a common stock selling for $15 per share. Warrants are also available. Three warrants entitle the holder to purchase one share of common stock for $9. Warrants are currently selling for $3.
A. How much would you have to spend to buy one share of stock using the warrants?B. What is intrinsic value of the warrant?C. What is speculative premium on this warrant?
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