B is calling for this equation also need help with C and D.

Common stock versus warrant investment Personal Finance Problem Tom Baldwin can invest $7,000 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $25 per share. Its warrants, which provide for the purchase of 5 shares of common stock at $21 per share, are currently selling for $24. The stock is expected to rise to a market price of $27 within the next year, so the expected theoretical value of a warrant over the next year is $30. The expiration date of the warrant is 1 year from the present. a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then sells it for $27, what is his total gain? (Ignore brokerage fees and taxes.) b. If Mr. Baldwin purchases the warrants and converts them to common stock in 1 year, what is his total gain if the market price of common shares is actually $27? (Ignore brokerage fees and taxes.) c. Repeat parts a and b, assuming that the market price of the stock in 1 year is $24. d. Discuss the two alternatives and the trade-offs associated with them. a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then sells it for $27, his total gain is $ 560. (Round to the nearest dollar.) b. If Mr. Baldwin purchases the warrants and converts them to common stock in 1 year, his total gain if the market price of common shares is actually $27 is $4083 (Round to the nearest dollar.) The realized gain on warrants can be computed as follows: Realized gain on warrants Number of warrants [ Stock price in 1 year Stock price to convert Number of shares to convert Warrant price today where the number of warrants that can be purchased is specified as follows: Total investment Number of warrants = Price of warrants Common stock versus warrant investment Personal Finance Problem Tom Baldwin can invest $7,000 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $25 per share. Its warrants, which provide for the purchase of 5 shares of common stock at $21 per share, are currently selling for $24. The stock is expected to rise to a market price of $27 within the next year, so the expected theoretical value of a warrant over the next year is $30. The expiration date of the warrant is 1 year from the present. a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then sells it for $27, what is his total gain? (Ignore brokerage fees and taxes.) b. If Mr. Baldwin purchases the warrants and converts them to common stock in 1 year, what is his total gain if the market price of common shares is actually $27? (Ignore brokerage fees and taxes.) c. Repeat parts a and b, assuming that the market price of the stock in 1 year is $24. d. Discuss the two alternatives and the trade-offs associated with them. a. If Mr. Baldwin purchases the stock, holds it for 1 year, and then sells it for $27, his total gain is $ 560. (Round to the nearest dollar.) b. If Mr. Baldwin purchases the warrants and converts them to common stock in 1 year, his total gain if the market price of common shares is actually $27 is $4083 (Round to the nearest dollar.) The realized gain on warrants can be computed as follows: Realized gain on warrants Number of warrants [ Stock price in 1 year Stock price to convert Number of shares to convert Warrant price today where the number of warrants that can be purchased is specified as follows: Total investment Number of warrants = Price of warrants