Maneesh 03 May 2020 at 14:23 PM

A company's stock trades rights-on for $50.00 and ex-rights for $48.00. The subscription price for rights holders is $40.00, and 4 rights are required to purchase one share of stock.
The value of a right while the stock is still trading rights-on is
A) $ 2 .00
B) $ 1.60
C) $ 0.50
D) $0.40