A firm has outstanding warrants that are exercisable at $53 per share and entitle holders to purchase two shares of common stock. The common stock is currently selling for $55 per share. The theoretical value of the warrant is ________.
A) $1
B) $2
C) $3
D) $4

Question

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The Answer of A firm has outstanding warrants that are exercisable at $53 per share and entitle holders to purchase two shares of common stock. The common stock is currently selling for $55 per share. The theoretical value of the warrant is ________.
A) $1
B) $2
C) $3
D) $4

A Firm Has Outstanding Warrants That Are Exercisable at $53