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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (58214)	4/6/2008 5:23:51 PM
From: tyc:>	Read Replies (1) \| Respond to of 78408

>>as common moves through 10.00ish and 12.00ish areas, warrants see 5.00ish? I have an old warrant calculator that has served me well. If I punch in the current parameters; strike price $15, current stock price 7.50, current warrant price $1.80, it calculates the relevant price curve for the warrant. According to this price curve, if the stock price climbs to $10, the warrant price on the curve will be $2.83. You can see the leverage indicated for the warrant; the stock increases in price by 33%, the warrant increases in price by 57%. Nothing special there. Actually, I'm surprised at how cheap it indicates the warrant is. I suppose Mrs Market MAY be making a mistake and the warrant perhaps SHOULD be on a different and higher price curve. I have no opinion about that. You might ask about the long time-factor. But the erosion of time would cause a lower projected warrant price curve, not a higher one.