Calculating cash at expiry

[buzwiz]

When I exercise my American Call Warrant (that is I buy the shares at the strike price), does this cost exclude the price that I paid for the warrants. Eg. I buy 10000 warrants at 50c each. I pay R5000 for the warrants. The strike price was R100. Conversion ratio is 90. That means I can buy 111, 11 (111) shares. I will pay 111 x R100 = R11100 for the shares. If I now add what I paid for the warrants, that means I would have paid R11100 + R5000 = R16100 for the shares. Am I right? Please explain.

[SimonPB]

yip .. or you could just take the cash ..

[#3]

Only worth doing this if the shares are worth more than R116 at the time else like Simon says, take the cash of the warrant after expiry (preferably sell to the MM the day it expires as the payout takes a few days to happen)

[buzwiz]

What do ya mean by MM and how do I do this?

[#5]

MM is market maker, warrants desk on 0800 111 780 call them and they will sort it out for you