Question: The B.J. Services warrant is described in Section 23.1. How would you use the BlackScholes formula to compute the value of the warrant immediately after

The B.J. Services warrant is described in Section 23.1. How would you use the Black–Scholes formula to compute the value of the warrant immediately after its issue, assuming a stock price of $19 and a warrant price of $5? Begin by ignoring the problem of dilution. Then go on to describe how dilution would affect your calculations.

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