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Alaska Salvage dec 2009

AASHOK11y ago
question had asked to calculate current value of each warrant to lender using BSOP but we know that equity holder the option of call and lender has the option of put then why has answer had calculated ,value of warrant on call,I think it should be put option, please tell me why lender is valued as call option
John MoffatJohn MoffatTutor11y ago#1
A warrant give the right to buy at a fixed price, which is a call option.
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