Multiple Choice
An investor has $1,000 that she is interested in investing in ABC stock, which is currently selling for $10 per share. ABC's warrants are selling for $7 per warrant. Each warrant entitles the holder to purchase three shares of ABC's common stock for $8 per share. The warrant premium is ________.
A) $1
B) $2
C) $3
D) $4
Correct Answer:
Verified
Correct Answer:
Verified
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