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> Calculation of getting Warrant Value/ profit

post Jan 16 2018, 03:22 PM, updated 2y ago

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Im facing a problem here, when im doing the exercise published by SC. And i have no idea with this question.
im asking for help sad.gif

Jabe is looking at ABC stock trading at RM8 and their warrants-strike price of RM10. The warrant is currently priced at RM1. She buys 2000 warrants, if the stock rises to RM12 just before the warrant expire, how much profit could she make?answer given is RM2000.

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