What is the theoretical value of a warrant when the current price of the stock is $50 and the exercise price is $45? The exchange ratio is four shares for each warrant.

Name: What is the theoretical value of a warrant when the current price of the stock is $50 and the exercise price is $45? The exchange ratio is four shares for each warrant.
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The theoretical value of a warrant can be calculated as [(Current Price of Stock - Exercise Price) * Exchange Ratio]. Here, it is [(50 - 45) * 4] = $20.

What Is the Theoretical Value of a Warrant When the Current