Under what circumstances will warrants value be high
Under what circumstances will warrant’s value be high? Explain.
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A warrant’s value would be high when the stock price, time to expiration, and/or expected stock price volatility is high.
Mr. James K. Silber, an avid international investor, sold a share of Rhone-Poulenc only, a French firm, for FF42. The share was bought for FF42 year ago. The exchange rate is FF6.15 per U.S. dollar and was FF6.65 per dollar a year ago. Mr. Silber acquired FF4
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