Small Endeavours $($SE$)$ AG$$s capital structure consists of $4,000,000$ shares of equity and $500,000$ European warrants which can be exercised in a year$$s time. The holders of the warrants have a right to purchase one share of newly issued equity; to exercise this right, they would need to pay $20.$

The market value of SE$$s assets is $88,000,000.$ The firm$$s assets have a variance of annual returns of $0\mathrm{.}04.$ The $1$ year continuously compounded risk$-$free rate is estimated to be $7\%.$ SE does not pay dividends.

Use the Black$-$Scholes model to determine the value of a single warrant.