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PlanTrader

01/22/14 1:43 PM

#5094 RE: starbuxsux #5093

starbux, Question: do warrants have a time-value decay factor similar to options? Or no time-based decay? TIA.
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Foxwoods Man

01/22/14 4:01 PM

#5100 RE: starbuxsux #5093

Ok...I promised myself I wasn't going to get into the warrant thing again but....

From this point forward, if CVM reaches $2.00, the stock will appreciate about 100%, CSCIW would appreciate almost 150%.



So...I understand that,

But if the stock languished at $1.25-1.40 wouldn't the warrants stagnate while the equity price gain 25-40%?

I just can't get it in my head that when the equity price is at $1.25 why would the warrants have value over CVM? Wouldn't their value be zero (at $1.25)

I know I wouldn't pay 40 cents (or 2 cents) (CVM $1.25) to buy a warrant that needs an additional $1.25 to exercise when there would be no added cost for just buying CVM...

Honest question....
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learning curve

01/22/14 9:36 PM

#5105 RE: starbuxsux #5093

I have considered, and it's over my ability at this time....I'll follow it, see how it plays out, and maybe be able to make some sense of it....eventually

Thanks for sharing your opinion