| Author | Message | ||
     Kodibochu Kurra Bewarse Username: Kodibochu Post Number: 4673 Registered: 04-2019 Rating: N/A |
Warrant: It gives the right to buy shares after the merge completes. Example:" SV warrant gives you the right to buy one share for $11.50(strike price) after the merge completes. If the SV price reaches $20/- . Now, if you want to exercise your 'right to buy', here is the math for 1000 warrants- Warrant cost($2*1000 warrants)= $2000 Your warrant value= $20-$11.5=$8.5 your profit=1,000*8.5=$8500 Your ROI= 325%($6500 profit on the initial investment of $2,000) Risk: If the merge fails, you will lose the full money. |