Warrant Valuation: Factors Affecting Warrant Prices
Interactive

Warrant Valuation: Factors Affecting Warrant Prices

Intuition Publishing
Updated Sep 24, 2020

While covered warrants have become more popular, there has been a decrease in the popularity of traditional warrants. For this reason, here we will focus mainly on the factors that affect the pricing of covered warrants, such as the underlying stock price, the strike price, the volatility, the time value, dividends, and interest rates.