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The Rocky Scholes Swimwear's Warrant Is Trading for $10

Question 82

Multiple Choice

The Rocky Scholes Swimwear's warrant is trading for $10.00. The warrant carries the option to purchase a half share of common stock for $50. What is the speculative premium if the stock price is $65?


A) $1.00
B) $2.50
C) $5.00
D) None of these.

Correct Answer:

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