Tronox Inc. (TROX)

[pinkyringcapital]

fuller11, yes, you need the cash (or margin if that is available) to exercise the warrant. I would have advised talking to your broker before making the trade but if its already been done then you must have had the cash/margin available.

Your gain would be something less than the 80.37 you suggest because you will have a basis (or cost) associated with the old shares you used to own that became warrants. I think the easiest way to calc your basis in the warrants would be to figure out how much $$ you spent on the old stock and then divide that amount by the number of warrants you received.