Welcome To The Mannkind HUB On AGORACOM

Edit this title from the Fast Facts Section

Free
Message: Why Options are Better Than Warrants

For simplicity, lets assume warrant and jan 2015 $5 call are both at $1. Assume $10,000 investment. Assume share price is as of Jan 2015.

Share price 3 4 5 6 7 10 20

Option 0 0 0 0 10,000 40,000 140,000

Warrant 3,600 9,600 15,600 21,600 27,600 45,600 105,600

Option formula: (Share Price - $5 - $1) * 10000

Warrant formula: (Share Price - $2.40 - 1) * 10000 * .60

I'll warn you in advance, I have a terrible head cold today and thus may have this totally screwed up.

Share
New Message
Please login to post a reply