WarrantsOk, so who wants to try and explain the price of the warrants to me.
Exercise price: $1.50
Common share price: $1.70
Timeframe to expiry: just over 2 years (April 30, 2013)
So we get an intrinsic value of
.20 ($1.70 - $1.50). Experience would tell me
.10 - 0.15 cents for the time value of around 2 years. Yet, the price is .65 cents right now on the bid.
.65 less intrinsic (0.20) equals
.45 for time value........
How is this explained?
I am aware of some strong companies, with long term warrants, and I have never seen such a premium.
Thanks