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

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To: E. Charters who wrote (19291)	8/27/2006 6:44:29 PM
From: tyc:>	Read Replies (2) of 78416

Do you remember Dr. Morton Shulman back in the 60's ? In his book "Anyone Can Make a Million", he says, ".....the advantage of a warrant (over a call) is that because it was not created to satisfy a demand it is much cheaper". So Black Scholes may not be the determinant of warrant pricing, although perhaps it may be accepted a fair measure of value. Look at this page: quote.barchart.com In it you will see that recently RNG stock has been displaying historic volatility of close to 60%. However, if you enter details of the warrant in a BS calculator, the implied volatility of the warrant is probably about 50%..... and the delta is not just the 30% that I have been using but 37%. I have been watching the warrant trading closely. There has been a heavy overhang of the warrants..... I deduce that this market has provided just the depressed price that you say is so rare an opportunity. Anyway that's my guess FWIW..

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