GREY:BZAMF - Post by User
Comment by
UserErroron Oct 09, 2018 7:15am
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Post# 28764930
RE:RE:RE:RE:Why are the warrants so cheap??
RE:RE:RE:RE:Why are the warrants so cheap??Exactly. Also, time value typically commands a premium since the share value is leveraged. You’d probably see the warrants trade at intrinsic value a month or so before the May 2nd date, and then trade at a premium after it. The warrants actually limit part of the downside risk. If the shares were to go down a dollar, then you wouldn’t actually lose money because the warrants would eventually go up to the intrinsic value.
if everything crashes then you’re screwed, but that’s a bad outcome either way.
also, you wouldn’t actually want to exercise the warrants until they are set to expire. If you wanted out you would just sell the warrants.