A warrant gives its owner the right to purchase three shares of common stock at an exercise

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A warrant gives its owner the right to purchase three shares of common stock at an exercise price of $64 per share. The current market price of the stock is $71. What is the minimum value of the warrant?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Nov 29, 2023 01:15 AM

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A warrant gives its owner the right to purchase three shares of common stock at an exercise

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The warrant has intrinsic value because the current market price of the ...View the full answer

Corporate Finance

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