PSW Has Warrants Outstanding That Have an Exercise Price of $10.Each

PSW has warrants outstanding that have an exercise price of $10.Each warrant entitles the holder to purchase one share of PSW common stock.Last week PSW common stock was selling for $12 per share and, at the same time, the warrants traded at $5 each.Determine the warrant's premium over the formula value.

A) $0
B) $2
C) $3
D) $5