News Focus
News Focus
Followers 18
Posts 182
Boards Moderated 0
Alias Born 03/05/2014

Re: maverick1856 post# 45

Wednesday, 04/01/2015 4:33:54 PM

Wednesday, April 01, 2015 4:33:54 PM

Post# of 527
Thanks for that info Maverick! For those that are interested in calculating the fair value of the warrants here is a useful link I use when determining the risk free rate when using the black scholes model.

I use the Daily Treasury Yield Curve rates which can be found here: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2015

The way I would use this site is as follows, say I wanted to value the warrants using the black scholes model as of 3/31/15, to find the appropriate risk free rate I would go to the link provided above then find the 5yr Daily Treasury Yield Curve as of 3/31/15 which is 1.37. I would use the 5yr curve rate because their is 5yrs left until the warrants expire. (AKA 5yr lookback period)

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today