Can someone with knowledge of Warrants explain, page-16

ahh man - the great debate.. what is volatility ? dóh !

a derivative's volatility is simply the measure of price changes of an options/warrants premium...if a stock were to stay in a tight range for a long time.. the option would have 'low volatility'..and therefore little premiums as market players see this option as not likely to make any large moves...conversely..if a stock was subject to large price fluctuations, the option price would have 'high volatility' and high premiums..and thus to put it simply, volatility is a mathematical computation of the magnitude of movement in an option...it is volatility that decides whether options are high or low priced...implied volatility is calculated useing the most current option price, stock price, time to expiry & interest rate... it provides a more accurate assesment of current volatility of an option, compared to historical volatility which is a smoothing pf past price action... historical volatility...is calculated by averaging a past series of option prices.. you may use a 30 day hv a 90 day hv.. whatever tickles your fancy..