The Stock of Violets 4 U Is Currently Selling for $46

The stock of Violets 4 U is currently selling for $46 a share. The company has decided to raise funds through a rights offering wherein every shareholder will receive one right for every share of
Stock they own. The new shares being offered are priced at $40 plus four rights. What is the value
Of one right?

A) $1.20
B) $1.50
C) $2.40
D) $3.60
E) $6.00