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buzwiz
Suppose one Joe 50000 warrants at say 50cents each and the strike price is R100. Joe keeps the warrants until expiry. On the day of expiry the share is trading at R120. Will Joe make money. If so how much? If not how much does he lose? Please help.

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02-12-2009 12:49 PM

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5 REPLIES 5

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SimonPB

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02-12-2009 12:54 PM

value for a call at expiry is strike less spot divided by cover ratio ..

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Not applicable

02-12-2009 12:57 PM

Makes a profit as ends above strike. Take R20 divided by the conversion ratio is his profit ;-)

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SimonPB
well no, depends at what price they paid .. on above example if cover was 100, then they paid 50c and got 20c ..

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02-12-2009 01:01 PM

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buzwiz
I am confused. Also your formula is different from Spot1's reply. Can you calculate this one for me. Then I will know what to do in future. Please

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02-12-2009 01:11 PM

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Not applicable

02-12-2009 01:18 PM

ignore mine. I thought you paid R100. I read it wrong.

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