Question: Begin with the same setup as Example 22.1: Bigcos investment in Drugco for equity plus warrants. Now, in addition to the strike price of $20

Begin with the same setup as Example 22.1: Bigco’s investment in Drugco for equity plus warrants. Now, in addition to the strike price of $20 after two years and $50 after five years, assume that the warrants can also be exercised after three years at a strike of $30 or after four years at a strike of $40. Assume everything else from the problem is unchanged. Use bintree to solve for the value of Bigco’s warrants.

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