A firm’s capital structure of a company consists of 20,000,000 shares of common stock and 3,000,000 warrants.Each warrant gives its owner the right to purchase one share of newly issued common stock for an exercise price of $60. The warrants are European and will expire fouryears from today. The market value of the company’s assets is $1,000,000,000 and the annual standard deviation of the returns on the firm’s assets is 0.40. Treasury bills yield a continuously compounded annual interest rate of 5percent. The company does not pay a dividend. Computethe value of a warrant.