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What will be the percentage increase in the stock price

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Reference no: EM132601765

You can buy a warrant for $12.00 that gives you the option to buy one share of common stock at $21.00 per share. The stock is currently selling at $20.00 per share.

Question 1: If the stock rises to $46.00 per share and the warrant sells at its intrinsic value plus a speculative premium of $1.00, what will be the percentage increase in the stock price and the warrant price if you bought the stock and the warrant at the prices stated above, $20.00 and $12.00?

Reference no: EM132601765

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