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Gold/Mining/Energy : Canadian Warrants Only -- Ignore unavailable to you. Want to Upgrade?

To: calgarylady who wrote (2903)	2/27/2008 12:01:14 PM
From: tyc:>	Read Replies (1) \| Respond to of 23107

Newbies may find this of interest; Here's my attempt at academic trivia on what to expect (hope for) from our IMG warrants in the short term; . Each warrant enables the purchase of .42 of a IMG share for $3.75. (original CBJ terms). . With IMG trading at $8, .42 fraction is worth $3.36. . My warrant price curve calculator says at current price the delta of the warrant is 36%. That means the warrant should move as much as 36% of that $3.36 fraction of a share. . 36% of 3.36 equals $1.20, but the warrant is priced at only .40c. In my book, that 3x leverage, 3x.40=1.20. A black scholes calculator would indicate an even higher delta. But of course the market will probably have ideas different to both.