Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: BrightFuture who wrote (1198)	6/18/1998 1:59:00 PM
From: Casey W	Read Replies (1) \| Respond to of 7720

Pricing Warrants: I have seen some discussion regarding methods for pricing MVIS warrants. Since the stock pays no dividend, the warrants can be priced using the Black-Scholes option-valuation formula. This formula is a function of the standard deviation of the stock variability, the time to maturity, the level of the stock price and the risk free rate of return. It is interesting to note that the expected return on the stock does not affect the warrant price. Option dealers and traders routinely use the Black-Scholes formula to make large trades. Cheers.