Quote:
Originally Posted by Flaming Homer
One last question. I see it says 11 dollars is the offered buy price. So say it stays exactly 18 bucks for 20 days. And the warrant is 6.50. does this mean once I exercise my option I profit 0.50 cents or the value of my warrant goes towards my purchase and my profit is 7.00?
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If you exercise your warrant, you will need 11 dollars in your account, then you will get 1 share of the company. If you buy the warrant at 6.5, you could sell the share for market value once you receive it.
From what I understand, and I'm more saying this to confirm with some of our warrant experts here
. If the company forces you to exercise, you will have 30-days to have $11 in your account or sell the warrant. If you don't have the cash in your account, the warrant will expire and you get nothing.