A warrant which does not expire until several years in the future and which provides its owner the opportunity to buy a stock which is rising in price will probably sell for:

Question

Quizplus · Accepted Answer

A warrant with a long expiration date and a rising stock price provides the owner with the potential for significant gains, which increases demand for the warrant and drives up its price. Therefore, the warrant will likely sell for more than its intrinsic value.

A Warrant Which Does Not Expire Until Several Years in the Future