Jun 3 2009, 11:30 PM
QUOTE(ancs88 @ Jun 3 2009, 09:53 PM)
It's an erroneous explanation... well, isn't it higher the premium, the cheaper the warrant becomes....because it takes the percentage of the premium increase to breakeven.
No.The higher the premium means you pay extra for owning the warrant insteadgo directly to the mothershare.
If mothershare doesn't rise for the entire life of the warrant, that's means those premium you paid down to the drain.
The "cheap" term is not referring to the price of the warrant itself, but the intrinsic value of the warrant.
This post has been edited by cherroy: Jun 3 2009, 11:32 PM
Quote
0.0109sec
0.46
6 queries
GZIP Disabled