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

Forex, I am looking for assignment help on the topic FOREX. It would be gre...

I am looking for assignment help on the topic FOREX. It would be great if anyone help me.

Type of hedge funds, What are the Types of Hedge Funds? Please provide me r...

What are the Types of Hedge Funds? Please provide me report on Types of Hedge Funds.

Gordon''s dividend equalisation model, If the EPS is Rs.5, dividend pay-out...

If the EPS is Rs.5, dividend pay-out ratio is 50%, cost of equity is 20% and growth rate in the ROI is 15%. What is the value of the stock as per Gordon's Dividend Equalisation Mod

Define the financial leverage effect, What is the financial leverage effect...

What is the financial leverage effect and what causes it?  What are the potential benefits and negative consequences of high financial leverage? Financial leverage is the extra

International finance problem, International Finance Problem Analyze th...

International Finance Problem Analyze the attached case, along the lines indicated by the Assignment questions listed at the end of the case.  Since you will have plenty of tim

Determine about the synergistic effect, Determine about the synergistic eff...

Determine about the synergistic effect When two or more companies join together there must be a synergistic effect. Synergy is when 2 + 2 = 5. Net present value of the two comp

Dividends, Company X is expected to maintain a constant 7% growth rate in t...

Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If company X has a dividend yield of 4%, what is the required return on their shares?

Estimate financing types and requirements, This case provides the opportuni...

This case provides the opportunity to match financing alternatives with the needs of different companies. It allows the reader to demonstrate a familiarity with different types

What are the main elements of capital budgeting decisions, What are the mai...

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

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