RE: Stock vs warrantA warrant is never "overvalued" if, in your mind, there is no possible way that the stock will go down, or that the warrant will fail to outperform the stock.
Whatever value the Black Scholes (BS) model places on a warrant is total BS in a bear market, or with an overvalued share price...
In summation, when EDV is undervalued by 40% under NAV, at the very start of a bull gold year, and the warrant gives 3:1 leverage...who cares about any of that BS?
It's all about whether U can sleep at night worrying about the leverage and volatility!
If the stock is a winner, then the warrant is better, at any price.
jmho,
gildage