What is the intrinsic value of this warrant

Reference no: EM133332225

Question: The Arirang Music Co. has warrants outstanding that allow the holder to purchase one common shares at $16 per share (option price). The common stock is currently selling for $26, while the warrant is selling for $23.05 per share.

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

b. What is the speculative premium on this warrant? (Round the final answer to 2 decimal places.)

Reference no: EM133332225

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