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Analysis of the Warrant Hedge in a Stable Paretian Market

Published online by Cambridge University Press:  19 October 2009

Jimmy E. Hilliard  and
Robert A. Leitch
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Extract

A stock purchase warrant gives the owner the option to buy some predetermined number of shares of the associated common stock at a specified price over a stipulated time period. The specified price is called the exercise price of the warrant. The stipulated time period is quite variable, though the life of a typical warrant will exceed five years.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 12 , Issue 1 , March 1977 , pp. 85 - 103
Copyright
Copyright © School of Business Administration, University of Washington 1977

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References

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