Problem $19-1($Algo$)$ Value of warrants $[$LO$19-4]$

Preston Toy Company has warrants outstanding that allow the holder to purchase a share of stock for $$16($exercise price$).$ The common stock is currently selling for $$26,$ while the warrant is selling for $$13\mathrm{.}05$ per share.

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

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Intrinsic value

b$.$ What is the speculative premium on this warrant?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Speculative premium