WARRANTS

Warrant is an option granted by the corporation to

purchase specified shares at a stated price exercisable until the expiration date
Theoretical Value of Warrant

current market price per share of the underlying stock

number of shares that can be purchased

OPTION PRICE
Price per share
number of shares that can be purchased

A warrant is an option issued which gives the holder the right to buy a stated number of shares of stock at a specified time

Warrants are company-issued call options

Most warrants are detachable and can be traded separately from the bond or preference share which they were issued

Warrants generate additional capital when they are exercised