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To: koan who wrote (41151)5/27/2007 9:37:07 AM
From: tyc:>  Read Replies (1) | Respond to of 78419
 
>>"....warrants which have the potential to generate a 2 to 1 leverage, meaning if the underlying common stock goes up 100% then the warrants will increase 200%".<<

If the stock goes up 100% it doubles (2x), if the warrant goes up 200%, it quadruples (4x) its current price. Is that correct ? Or does a "200% increase" indicate only 3x its current price ?

Does simply dividing the warrant price into the stock price provide the same measure of leverage ?