RE:RE:When to hold Warrants vs Commons? $6.54 key number.
You are starting to understand but not quite right. If commons trade at 8, warrants are "in the money" for 1.46. They are at least worth 1.46. But, they will carry another amount, representing a premium for the time left. The more time you have left the more it is. Actually it is around 1.50. So,all else being equal, if commons go to 8 tommorow, WTS would be1.46 PLUS 1.44...2.90$ Still no point to converting. So, for example, you have 1000 warrants worth 2900$...would you take 6540$ to buy 8000 worth of commons??? That's a profit of 1460. And 2900 is greater than 1460... Please, I suggest you read a bit on pricing of long term options.