The intrinsic value of a warrant = (Market price of common stock + Warrant exercise price) ´ Number of shares specified by warrant.

Name: The intrinsic value of a warrant = (Market price of common stock + Warrant exercise price) ´ Number of shares specified by warrant.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The intrinsic value of a warrant is calculated as the difference between the market price of the common stock and the warrant's exercise price, multiplied by the number of shares that the warrant allows the holder to purchase.

The Intrinsic Value of a Warrant = (Market Price of Common