Leverage question. I understand the concept of leverage and that is exactly why i bought a ton of the B warrants, but i'm getting quite confused with my calculations. If the warrant price will on average be approximately (share price - exercise price) and yes I know that is just a rough estimate, then how come I keep coming up with figures where selling the warrants at that price creates a higher profit margin than exercising and selling at the share price and subtracting the cost of the warrants and the exercise cost? Yes that was a run-on sentence, forgive me i'm tired. Can someone clear this up for me? Because I have tried multiple calculations and ways of doing it and they all come up the same.
Cheers,
Your fellow long.