HDRWMB are they expensive

I've just started to look at the Macquarie warrants.

Using and a Black-Scholes Pricing Analysis, with a volatility of about 60% (a bit above what HDR is now), and I note that the fair value of the warrant is around 10.5-11c.

Only thing is thats with a 1 for 1 conversion.

Since its a 2 for 1 conversion; the fair value of the warrant should be about 1/2 this (i.e 5.5 cents).

Earlier people noted that on the current price you need a price for the fully paids to be above $1.14 to break even.

From what I can tell this is an all or nothing play, and McQuarie are putting a large premium on the warrants.

If I have done my calculations wrong can some one please correct.