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Re: JoseSD post# 77

Wednesday, 04/01/2015 6:56:08 PM

Wednesday, April 01, 2015 6:56:08 PM

Post# of 527
There is a model used to value warrants which is called the black scholes model. This model traditionally has 6 inputs: stock price, strike price, expected term, volatility, dividends, and risk free rate. I used the number 1.37 as an example how I like to find the risk free rate when I use the black scholes model. The risk free rate is the rate of return you could expect if you invested your money in an investment with no risk i.e. T-Bills.

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