Replies to post #46447 on Tauriga Sciences Inc (fka TAUG)

[plutoniumimplosion]

Or does it require an assumption that the option is to be held until its expiration date?

Black-Scholes is a calculation that determines the value to the holder of a derivative security. It is one of those calculations that contains a formula that only a CPA or bureaucrat could have designed. It is yet another cashless hit to a public company's balance sheet. Black-Scholes calculations assume that the security will be held until term, whether it is or not. The longer the term, the bigger the balance sheet hit. So a 5-year Warrant and a 10-year Warrant, even with the same strike price will have different Black-Scholes hits, with the 10-year Warrant having a much bigger hit than the 5-Year Warrant.

[Johnny_C]

I think I looked at Black Sholes valuations enough to know the spelling. Sometimes voice dictation does work perfectly on a phone and I think people get the point.

Why don't you get an evaluation of what they are worth and let me know what you find out. I believe you mistakenly stated that warrants out of the money are worthless, they are not and I have explained you only have to look at out of the money options to see time value, strike price and volatility all go into pricing out of the money options. Not to mention supply and demand.

Further, I have given examples of warrants trading that are out of the money including;

BLNKW - strike price $4.25 and TROVW - strike price $8.00

All of the warrants held here have value, bur warrants not valued on the exchange are not permitted to be valued on the books only because of accounting rules that you are aware of and not because they are worthless.

It will be interesting to see the positions that are held in the next quarter or two.