The difference between the exercise price and the market price is the key value driver of warrants & options.

Name: The difference between the exercise price and the market price is the key value driver of warrants & options.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

The difference between the exercise price and the market price, also known as the "intrinsic value," is the main determinant of the value of warrants and options. If the intrinsic value is high, the warrant or option is worth more, and vice versa.

The Difference Between the Exercise Price and the Market Price