Question: d) (5 marks) PP Bhd. issued warrants that entitle each warrant to buy two common shares at RM6 per share. The current market price of

 d) (5 marks) PP Bhd. issued warrants that entitle each warrant

d) (5 marks) PP Bhd. issued warrants that entitle each warrant to buy two common shares at RM6 per share. The current market price of the common share is RM8 per share. The warrant is priced at RM5. Calculate: i) the theoretical value of the warrant (3 marks) ii) the warrant premium (2 marks)

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