Explain why warrants are rarely exercised, Financial Management

Assignment Help:

Explain why warrants are rarely exercised unless the time to maturity is small?

Warrants are seldom exercised till the time to expiration is small because the market price of the warrant is greater as compared to the exercise value.  The holder of the warrant would hence sell it in the secondary market in place of exercising it if he or she wishes to cash in.


Related Discussions:- Explain why warrants are rarely exercised

Determine the limitations of trade receivable day ratio, Determine the Limi...

Determine the Limitations of trade receivable day's ratio Year-end trade receivables may not be representative of the year. Credit sales are VAT exclusive in the Incom

Caselet 2, Suggestion regarding Credit limit. Should it be approved or not,...

Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.

Answer, Part B This case is intended to be an introduction to the various ...

Part B This case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the decisions that may have to be made when evaluating pro

Functional classification of mutual funds, Functional Classification of Mut...

Functional Classification of Mutual Funds Functional classification of Mutual Funds is based on the basic characteristics of the mutual fund schemes for subscription. Mutual Fu

State the term nature of financial instruments, State the term nature of fi...

State the term nature of financial instruments. Nature of financial instruments (securities): Financial instruments (termed as securities) can be classifies in two broad

Describe the term- investment decision, Describe the term- Investment Decis...

Describe the term- Investment Decision Investment decision, also referred to as the capitalbudgeting decision, simply means decisions to acquire assets or to invest in aproj

Economics, a) Define monetary policy, and discuss the operation of monetary...

a) Define monetary policy, and discuss the operation of monetary policy in the United States post-GFC.

Explain about the audit risk, Audit risk Obtain understanding of ac...

Audit risk Obtain understanding of accounting and internal control systems. Sufficient to plan audit and develop effective audit approach. Professional judgement to

Compare and contrast mutual and stockholder, Compare and contrast mutual an...

Compare and contrast mutual and stockholder-owned savings and loan associations. A few savings and loan associations are owned by stockholders, just like commercial banks and ot

Determine net present value according to ezra solomon, Determine Net presen...

Determine Net present value according to Ezra Solomon " The gross present worth of a course of action is equal to the capitalised value of the flow of future expected benefit,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd