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To: gravityz who wrote (20855)8/22/2011 1:47:21 PM
From: I_C_Deadpeople  Read Replies (1) | Respond to of 23098
 
You can see this happening on the Silver Wheaton warrants.

Strike is $20 (US)

Shares are at $39.86
Warrants at $21.75

Shares are up 1.82 today, warrants up 1.15.

The value of the warrant is essentially the share price less the strike price, give or take.



To: gravityz who wrote (20855)8/22/2011 2:04:45 PM
From: koan  Respond to of 23098
 
The variable that causes time value to be lost, with the increase of intrinsic value, has to do with the reduction in leverage that accompanies that transition, as the wt enters the money.

So it is just a bit complex as several variables are interacting, but it is logical.