A warrant loses some of its financial leverage when the share rises far above the exercise price.

Name: A warrant loses some of its financial leverage when the share rises far above the exercise price.
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Question

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When the share price rises far above the exercise price, the warrant becomes less attractive to investors as it is unlikely that the warrant will be exercised. This results in a decrease in the warrant's financial leverage.

A Warrant Loses Some of Its Financial Leverage When the Share