--%>

Why warrants are hardly exercised unless small time maturity

Describe why warrants are hardly ever exercised unless the time to maturity is small?
Warrants are hardly ever exercised until the time to expiration is small since the market price of the warrant is higher than the exercise value. The holder of the warrant would thus sell it in the secondary market rather than exercising it if he or she wanted to cash in.

   Related Questions in Finance Basics

  • Q : Working capital what are the advantages

    what are the advantages and disadvantages of working capital source of finance

  • Q : Contrast prescribed benefit and

    Compare and contrast a prescribed benefit and contribution pension plan.In a prescribed benefit plan, retirement benefits are determined by a formula that typically considers the worker's age, salary, and years of service.  The employee and

  • Q : Health finance 7.2 The audiology

    7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Service Variable Cost Annual Direct Annual # Visits per Service Fixed Costs Basic exam $5 $50,000 3,000 Advanced examination $7 $

  • Q : Analysis On Financial Indices On a

    On a weekly basis, starting from week ending on 18/1, you need to produce a weekly performance report of the major indices around the world following this structure:  Currencies a. USD vs Yen, vs GBP(GBP/USD), vs. Swiss Franc (USD/CHF) b. Euro vs USD, Y

  • Q : Explain Pro Rata Pro Rata : It is the

    Pro Rata: It is the amount of state administrative costs, paid from General Fund and the Central Service Cost Recovery Fund (example, amounts expended by the central service departments like the State Treasurer's Office, State Controller's Office, Sta

  • Q : Define Obligations Obligations : The

    Obligations: The amounts that a governmental unit might legally be needed to pay out of its resources. Budgetary authority should be obtainable before obligations can be formed. For budgetary aims, obligations comprise payables for goods or services r

  • Q : Crowding out influence Normal 0 false

    Normal 0 false false

  • Q : Compare diversifiable and non

    Compare diversifiable and non diversifiable risk. Which do you think is more significant to financial managers within a business firms?Diversifiable risk can be dealt along with by, of course, diversifying. Generally non diversifiable risk is co

  • Q : Pros and cons of commercial paper

    Describe pros and cons of commercial paper associated to bank loans for a company seeking short-term financing? Usually commercial paper is a cheaper source of short-term financing for a firm, compared to bank loans. Also, a larger amount of fu

  • Q : Revision Order #2 Hello, You folks

    Hello, You folks recently completed an order for me. I'm very impressed and much thanks in advance. I'd like to submit more problems (8 attached) if you can have the same expert work on these please? Some of the #'s were slightly modified from my previous order, so should be easier than starting