QUOTE(fastreader @ Jan 10 2019, 11:26 AM)
I have a question which i hope the sifu can advise:
Situation:
- I have 5600 shares of PMETAL-WC (Expiring in Aug 2019), bought for RM1.71
- Currently trading at 4.24 for PMETAL-WC, trading at 4.64 for PMETAL
- Exercise price is 0.39.
QUestion:
1) Should i choose to convert, i'll just have to pay RM0.39 X 5600 = RM2184 ? (Meaning, my cost price is only RM1.71 + RM0.39 only? )
2) Or do i need to pay RM4.24 + RM0.39 for all 5600 units?
Thanks.
QUOTE(oOoproz @ Jan 10 2019, 07:01 PM)
2nd is the right calculation.. If me it's better to sell the warrant than converting it since u are making profit, and market is really uncertain now, better hold cash and wait for the right timing
I dont think 2nd is correct .
He bought the warrant at RM1.71 long time ago and final exercise price is 0.39 , now warrant RM4.24 mean he is earning (4.24-1.71= RM2.53) and mother RM4.64 , exercise is 0.39 . Y he need pay RM4.24+RM0.39?
To exercise his warrant = his warrant shares unit x exercise price 0.39 only . Nw ur mother share cost price RM1.71+RM0.39 = RM2.09 only , if u sell u will earn RM4.64-RM2.09 = RM2.55
Any Sifu pls help verify it .