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To: marcos who wrote (44009)	7/5/2007 6:57:09 PM
From: LLCF	Respond to of 78421

<and i think in a takeout scenario they would use the B-S model to arrive at a 'fair price' for warrants, in which case the Bs would value out in comparison to the As according to volatility of the common, more than any other factor?> I think it depends on the details of the warrant covenents... in options on a CASH buyot expiration day moves to buyout day... ie. time spreads collapse to zero. DAK

To: marcos who wrote (44009)	7/5/2007 7:24:54 PM
From: koan	Read Replies (1) \| Respond to of 78421

Actually marcos, you are right and I am wrong when one considers that in the past there was a big spread. To bolster your argument, yes it allowed you to tie up more shares and it was my mistake in not mentioning it. In the past that was a much more over riding variable. That is really a much more important variable than any of mine, especiallly considering the time left. My comments are only valid when the two stocks are close to the same price. I am tired and hadn't thought of that. Actually that is why I bought the B's myself and I forgot that-lol. But I would say if you can trade across now or get pretty close it would be worthwhile.