Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: freelyhovering who wrote (71506)	8/27/2011 1:53:36 PM
From: koan	Read Replies (1) of 78419

<<When NGD hits $16. won't the B warrants be at $1.10? or do they not work like options?>> The wts work exactly like options, but the B's are 10 for 1 share. So at $16, the wts would have .10 intrinsic value and a guess would be maybe .20 for time value. But as wts move into the money they trade time value for intrinsic value. The reason for this is that as the wt moves into the money there is less leverage and so time value is depreciated. In fact, as wts first move through the strike price, they will slow down from loss of time value and then pick up again as intrinsic value mirrors stock value. Hope that helps. If not, feel free to ask any questions.

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