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Pastimes : son of T/FIF

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To: John Metcalf who wrote (106)	8/26/1999 11:17:00 PM
From: Biomaven	Read Replies (1) of 673

callable if the stock price averages $9.10 for a month I think you have the explanation here, John. This essentially means that the time-premium of the warrant is shot once the stock exceeds the $9.10 price. The fact that it needs to do so for a month doesn't really help - once the stock goes above $9.10 there can't be any time premium left in the warrant - you'll only get some time premium back if the stock goes down again. Technically the warrant is still a shade better than the stock (slightly more downside protection as you'll get some time premium back if the stock declines substantially) but this is probably more than offset by the bigger spread and reduced liquidity. So personally I wouldn't bother with the warrant at this point. Peter

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