NEWBIES OPTION CalculationNEWBIES OPTION Calculation
rotax1 wrote: last warrant price was 1.95 so 2.21 + 1.95 4.16$ last share price was 3.69$ 0.47$ it the extra to pay for this option so now the warrant it is cheap or not?
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BACK TO KINDERGARDEN, are we?
Don’t want to talk implied volatility? Okay. Can do.
Then consider this:
The warrant gives you finance of that $2.21 exercise price.
47 cents / $2.21 = 21.3%.
Warrant expiry is 2024, or about 5 years.
21.3% / 5= 4.25% before compounding.
And this ignores the fact the with the wts, the $2.21 is NOT AT RISK.
So now, knowing a bit more,
Are the Options cheap or not?