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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper -- Ignore unavailable to you. Want to Upgrade?


To: Ga Bard who wrote (2580)6/5/1998 11:29:00 AM
From: Netnut7  Read Replies (2) | Respond to of 4142
 
Gabard, Just checking to see if I have things straight on the warrent.

1. warrent is like an option: right to buy 100 shares with a strike price and a long term expiration date

2. If price goes above strike price ex. strike of $1 and price is $1.25 the warrent would be worth .25 (25 cents over the dollar) plus any premium, plus time value. Not sure how premium and time value are calculated.

3. If price goes above $2.5 on these warrents the company calls warrents in and limits your upside.

Question: IS IT MORE ADVANTAGEOUS THEN TO BUY THE COMMON STOCK SO AS NOT TO LIMIT UPSIDE?

Just Learning
Kevin A.