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Technology Stocks : Nam Tai Elec. (NTAI)

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To: blankmind who wrote (1289)3/20/1998 9:58:00 AM
From: DanD  Read Replies (1) of 1696
 
Hey Guys,
Just a update on the warrants valuation. I Ran the Black Scholes model on the warrants with the following inputs price = $17.25 strike = $20.4 time = 2.75 years interest rate = 5% volatility = 62% (using last 3 years as input for determining volatility.
The model says the value of the warrants is $6.61 per share. Of course the model has no adjustment for the capped nature of these warrants/options.

Dan D
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