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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: dara who wrote (17472)	8/21/2003 12:58:33 PM
From: LLCF	Read Replies (3) \| Respond to of 39344

WRM warrants: If Strike= 1.65 and stock = 2.04, they are .49c in the money... ie. they MUST be worth @ least .49. Then they will have premium, but no I wouldn't expect them to trade 1.65. I think you are missing something.... that said however, I do think they're worth a buck! The situation is this... these warrants give you the 'right' but not obligation [BIG distinction, if the company goes belly up, you lose only the amount you paid for the warrants] to buy the stock @ 1.65. You will have to pay 1.65 to turn you warrants into stock. Hope that clears things up. DAK

To: dara who wrote (17472)	8/21/2003 1:21:08 PM
From: Tommaso	Read Replies (1) \| Respond to of 39344

What you are missing is that the $1.65 is not a "strike." The $1.65 is what you must pay in order to exercise the warrant. You buy the warrant. Then you come up with the additional $1.65 Canadian and you buy the stock. You are not buying the right the buy the stock at $1.65 the way you would with a call option that had a strike of $1.65. What this also means is that if you are a US buyer of the warrant, and if the Canadian dollar rises, you have to pay more than you did when you bought the warrant.