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Bullboard - Stock Discussion Forum Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

TSX:HSE.PR.B - Post Discussion

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Post by Oasisjunior on Jan 11, 2021 1:35pm

Not worried,

I did purchase some CVE warrants..... I paid 3.50 for them,,, I firmly beleive the common share price of CVE will sky rocket and this is a great growth investment. If I have done my math correctly the cost of the warrant is 3.50 plus 6.88 for the share price for a total strike pprice of 10.38. Cenovus should easily be able to surpass this in the next five years..... money in the bank.
Comment by Husky4000 on Jan 11, 2021 1:51pm
Your math is not correct.  The price of the warrant is 3.50. Strike price is 6.54 while shareprice is 8.10. So 1.56 is in the money and 1.94 is Time value. In other words, the real value of the warrant is the difference between 6.54 and actual shareprice.  The rest is a premium CVE needs to gain 1.94 in 5 five years (10.04$) to be 100% in the money.
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