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To: koan who wrote (38240)	4/14/2007 9:56:58 AM
From: SwampDogg	Read Replies (1) \| Respond to of 78408

<<Also if BWR went bankrupt, the wt holder would lose less>> you crack me up if a company goes bankrupt both holders lose 100% of their money the warrant holders would just lose it a lot more quickly this is the very reason to not own warrants take a look at your beloved kinross warrants, time is a wasting quickly and intrinsic is only about $0.60

To: koan who wrote (38240)	4/14/2007 11:57:35 AM
From: LLCF	Respond to of 78408

<And there are concepts e.g. BWR wts: stock $2.17, wts $1.28; strike $1. So the wts have $1.17 intrinsic value which means one can get almost 2 to 1 leverage for just .11 and the wts are good until Jan 09. Why would anyone buy the stock?> Yes, assuming they are 1:1 and you don't make the mistake of the K warrants (3:1) they they will show up in any standardized options model as dirt cheap. There's no reason to "guess" based on some preconceived notion about leverage. <I know wt value is something one has to learn and can learn (there IS soemthing to learn Dak) and there are many variables to consider, some very amorphous.> Yes, there are any number of great books out on options pricing theory and practice. <I am never quite sure what you are saying? That leverage means nothing? > That using leverage as the guide to buying warrants is a mistake. In fact if leverage is anything, it is concordant with risk, and isn't something that is sought out for it's own sake. If you think you know where the stock is going then that is something that needs to be included in commentary about the warrants.... and risk taking. DAK