What is the intrinsic value of the warrant

Reference no: EM131792541

Question: Rockport Shipping Co. has warrants outstanding that allow the holder to purchase a share of stock for $16 (exercise price). The common stock is currently selling for $24, while the warrant is selling for $11.75 per share.

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

b. What is the speculative premium on this warrant?

Reference no: EM131792541

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