Vixen plc has warrants in issue that can be used to subscribe for ordinary shares in the company on a one-for-one basis in six months time at an exercise price of $4.50. The warrants are currently quoted at $1.20 and the current share price is $5.40.
What are the warrant conversion premium and the intrinsic value of the warrant?
Conversion premiumIntrinsic value
A. $1·20$0·90
B. $0·30$0·90
C. $1·20$1·50
D. $0·30$1·50
Vixen plc has warrants in issue that can be used to subscribe for ordinary shares in the company on a one-for-one basis
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answerhappygod
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