Fannie Mae-No Politics (FNMA)

[stockprofitter]

When applying the excersized price of the warrants they should have used the Black Scholes Method. Instead they just simply picked a number out of thin air and applied it which totally contradicts the rules of warrant pricing.

Do you think the Apple BOD or any other hugely profitable company could issue warrants today at 700% less than what the stick is trading at? The answer is no.

In Fannie Mae’s case they issued warrants for one one thousandth of a penny while the stock was trading in the 20 cent range. The formula they should have used was to take the preceding 10 day closing stock price average.

Government thought nobody was watching.