Confused about warrant valuations.
Going to this handy-dandy, all-in-one, Canadian Warrant site:
canadianwarrants.com
I read down to the SSL warrant line for the 23 Apr 2014, strike price .60 issue.
At todays stock close, .90, and todays warrant price .457, I see that the warrants are .30 cents in the money....with over 3 years to go.
But reading across, this site of all things Canadian warrant related advises that these warrants are overpriced.
Does anyone have a sense of how those recommendations are developed?
I assume it is based on some sort of Black-Scholes mystery algorithm, but I am curious how things like remaining time are handled.
Intuitively, I think I am, in good shape with these warrants with that much time, but obviously I don't understand the finer points in warrant valuation.
Maybe folks who rely on fundamental analysis ought to leave these things to the TA guys... |
