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SCJCPA

04/01/15 4:33 PM

#75 RE: maverick1856 #45

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)