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What is the speculative premium on this warrant

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Reference no: EM131143532

Preston Toy Co. has warrants outstanding that allow the holder to purchase a share of stock for $22 (exercise price). The common stock is currently selling for $28, while the warrant is selling for $9.25 per share.

a. What is the intrinsic (minimum) value of this warrant?

b. What is the speculative premium on this warrant?

Reference no: EM131143532

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