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Intrinsic or minimum value of warrant

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Sen Corporation warrants carry the right to buy 10 shares of Sen common stock at $3.50 per share. The common stock has a current market price of $4.25 per share. What is the intrinsic or minimum value of one Sen warrant?
$.75
$7.50
$15
$0

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Solution Summary

The solution explains how to calculate the intrinsic or minimum value of one warrant.

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