Problem 1: A firm has a capital structure consisting of 9 million shares of common stock and 800,000 warrants. Each warrant gives its owner the right to purchase one share of newly issued common stock for an exercise price of $22.20. The warrants are European and will expire one year from today. Based on the value of the firm's assets, the annual variance of the assets' returns, and financial market details, the firm has used the Black-Scholes model to determine that the value of an equivalent call option is $3.73. Calculate the value of a single warrant.