Jacobs and Company has warrants outstanding, which are selling at a $2.50 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $26. If the common stock currently sells for $30, what is the warrant price?
A)$6.40
B)$6.75
C)$7.25
D)$6.50

Question

Quizplus · Accepted Answer

The Answer of Jacobs and Company has warrants outstanding, which are selling at a $2.50 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $26. If the common stock currently sells for $30, what is the warrant price?
A)$6.40
B)$6.75
C)$7.25
D)$6.50

Jacobs and Company Has Warrants Outstanding, Which Are Selling at a $2.50