That calc is incorrect because you can not buy the same DOLLAR value at 60c as you can at 120. It is a 1:1 entitlement so if you need to take the middle price of the two issue prices becasue the volume at 120 will be the same volume at 60. Mid point will be 90c.
10,000 at 120c = $12,000 10,000 at 60c = $6,000
Thats 20,000 for a total of $18,000. Therefore mid price is 90c.
People will be in the money if the SP remains above 90c which I think it will.
KZL Price at posting:
89.3¢ Sentiment: None Disclosure: Not Held
