OTCPK:MEAOD - Post by User
Post by
mariners13on Nov 17, 2009 10:44am
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Post# 16494863
Warrants
WarrantsHi:
I have often wondered how to value warrants in comparison to the underlying stock. I note the warrants for MTO (MTO.WT on the venture) expire in May of 2012 and are currently trading at about half the price of MTO. They are priced at $1.00. I understand their exercise price and the date they expire will affect the price, but is there any formula used to determine value? I'm told that if things work out well there is better value in a warrant, but why?
Regards,
Mariners13