Re: Options Expiration Today
in response to
by
posted on
Jul 20, 2008 01:17AM
Producing Mines and "state-of-the-art" Mill
Thanks guys you do put my mind at rest. You guys put this suit beside my ID but in all respects I am a shareholder just like you. I have my weak moments too. I need your words too sometimes.
So question for the forum
July 17th 100,000 warrants with an exercise price of $3.17 expire using the Black-Scholes Valuation worth $93,900.
When the options are exercised, the fair value amount in contributed surplus is credited to capital stock. In addition when warrants expire unexercised the fair value allocated to the warrant at the time of the grant is removed from the warrant and credited to contributed surplus.
So I would assume we will likely see the entry Expiry of warrants $93,900 since we are no where near to $93,900.
Is this correct?
I also assume from JES' quote that since there may be options elsewhere - it could be this stock or other stocks that may be used to raise cash in order to facilitate the purchase of options before they expire.
Is it also the norm in many businesses to replace these current options with new options or are they just gone - poof! What is the normal practice in most businesses? (This is an industry wide question and not company specific.)