Northern Airlines has warrants outstanding that allow the holder to purchase 1 45 shares per warrant at $15 per share (option price) The common stock is currently selling for $19 a What is the intrinsic value of the warrant b If the stock sold for $12 50, how large would the negative intrinsic valu...

Northern Airlines has warrants outstanding that allow the holder to purchase 1.45 shares per warrant at $15

Question:

Northern Airlines has warrants outstanding that allow the holder to purchase 1.45 shares per warrant at $15 per share (option price). The is currently selling for $19.
a. What is the intrinsic value of the warrant?
b. If the stock sold for $12.50, how large would the negative intrinsic value be? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...