If a warrant carries a right to buy one share of common


If a warrant carries a right to buy one share of common stock and is exercisable at $20 per common share while the market price of a share is $30, the theoretical value of the warrant is:

A. $20.

B. $10.

C. $5.

D. $0.

Solution Preview :

Prepared by a verified Expert
Financial Accounting: If a warrant carries a right to buy one share of common
Reference No:- TGS01484903

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)