ALASKA SALVAGE (DEC 09 ADAPTED)-Kaplan Exam Kit

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January 29, 2021 at 10:17 am #608430
Noah098
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sir using the BSOP we get an answer of $22.41. But i don’t understand what it really means? As in, is it the premium of call option which is offered to potential warrant acquirers? Am totally confused about what this $22.41 represents!!
January 29, 2021 at 4:06 pm #608468
John Moffat
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The warrant is an option to buy 100 shares at an exercise price of $90 per share in 5 years time.

The option is negotiable, so can be sold to someone else, and $22.41 is the value of the option per share.
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