The Smith Swimwear's warrant is trading for $10.00. The warrant carries the option to purchase a half share of common stock for $40. What is the speculative premium if the stock price is $50?
A.	$1.00
B.	$2.50
C.	$5.00
D.	None of the above
Answer:C
The Smith Swimwear's warrant is trading for $10.00. The warrant carries the option to purchase a half share of common stock for $40. What is the speculative premium if the stock price is $50?
A.	$1.00 B.	$2.50 C.	$5.00 D.	None of the above