Why is this true: "An increase in average market price could cause Zachary’s warrants to go from antidilutive to dilutive. If the average price of the stock increases during the year, the warrants are likely to be exercised at some point during the year. " I thought warrants would more likely be exercised if the stock price at year-end rose. Thanks

Hi @tronik, welcome! It's because warrant can be exercised anytime within a specified period, it doesn't need to be at maturity like some plain vanilla call options.

hmm, options can be exercised anytime within a specified period too, called "vesting." i guess since the vesting period can be anytime during the year for options or warrants (not just year end), then "during the year" answer is better than "end of year" answer.

A CFA Level 1 Discussion About Warrants

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This topic has 3 replies, 3 voices, and was last updated Sep-239:12 am by Elanino.

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- Sophie Macon
  Keymaster
  14 Apr 2017 at 3:11 am
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  Hi @tronik, welcome!
  
  It’s because warrant can be exercised anytime within a specified period, it doesn’t need to be at maturity like some plain vanilla call options.
- tronik
  Participant
  14 Apr 2017 at 7:34 am
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  hmm, options can be exercised anytime within a specified period too, called “vesting.” i guess since the vesting period can be anytime during the year for options or warrants (not just year end), then “during the year” answer is better than “end of year” answer.
- Elanino
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  - Undecided
  27 Sep 2023 at 9:12 am
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  The majority of smaller or more recent companies have their shares listed on the NASDAQ, an electronic stock market tracking system. The exchange keeps track of the price at which a stock is sold each time. Follow geometry dash meltdown
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