Question

PROVIDE Aocess Code 841607 Language Needed Caßers Full Name Brigham and Women's Hospital PROBLEM 2- WARRANTS the holder The warrants of Integra Life Sciences allow to buy a share of stock at $11.75 and are selling $2.85. The stock price is currently $8.50. To what price for must Mestockgof rthe warrant purchaser to at least be assured of breaking even?

Answer 1

Break-even point is the point at which there is no profit and no loss. Investor will pay the strike price and premium if he chooses to buy the warrant.

Break-even point = Strike Price + Premium = 11.75 + 2.85 = $14.60

If the share go for $14.60 then the purchaser of share warrant can assure break-even.