Cash = $5,000 <br /> GWAC PPS = 11.52 <br /> GWACW PPS = 2.57 <br /> <br /> 5,000 ÷ 11.52 = 434 Shares <br /> 5,000 ÷ 2.57 = 1,945 Warrants <br /> <br /> Assume GWAC PPS hits 30.00 (The warrants pps would be much higher too & it's possible they could be sold for even a higher, easier profit but I'm not running that scenario) <br /> <br /> GWACW strike price is 11.50, so you exchange 1 warrant plus 11.50 & receive 1 GWAC share. Total cost for that share is 14.07 (11.50 + 2.57) If sold at 30.00, then profit is 15.93 <br /> <br /> 1,945 × 15.93 = 30,983 <br /> <br /> To exchange all 1,945 warrants you need to come up with $22,373 (1,945 × 11.50) Don't forget to add the 5k paid for the warrants too so total cost is 27,373 <br /> <br /> 1,945 × 30 = 58,365. 58,365 - 27,373 = 30,992 <br /> <br /> You can do the math for if you simply bought & sold regular shares. <br /> <br /> What if you don't have the $22.3k? There is something called a "cashless exercise" too. The details would be in one of the filings for that stuff. My brain hurts right now to get into those details! Stuff like ""black-Scholes" valuations. The exercise/exchange stuff is typically handled between you & the underwriter. <br /> <br /> Hope this helps more than confuses! <br /> Like the good wine thing too!