re: question for warrant guru,s ( to 618 ) Hoot,
The time premium is worth about 43 cents today on the HDRIZU.
The exercise price of 150 plus the current market price of 63 (total 213) minus the market price of the underlying HDR of 170 (approx) equals 43.
If at expiry, 24/1/06 HDR is 213, today's price of 63 for HDRIZU is breakeven.
For a long term holder paying 170 now makes more sense than 63 now and 150 in Jan 06. The 43 cent difference is a huge interest rate.
For a trader there is the question of leverage versus the deterioration of the time premium over the next 8 months.
T
HDR
hardman resources limited
re: question for warrant guru,s ( to 618 ) Hoot,The time premium...
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)