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The Gifford Investment Company bought 80 Cable Corporation warrants one year ago and would like to exercise them today. The warrants were purchased at $28 each, and they expire when trading ends today. (Assume there is no speculative premium left.) Cable Corporation common stock was selling for $48 per share when Gifford Investment Company bought the warrants. The exercise price is $36, and each warrant entitles the holder to purchase two shares of stock, each at the exercise price.
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