Black Scholes calculation
By rhumble
@rhumble (1)
July 25, 2006 2:54am CST
I am trying to find out specifically how this formular works in relation to some warrants that we are trying to issue to a group that we are trying to work out an acqusition with. We have attempted to add value to their deal by offering them 2.0 million in stock warrants, based on the above calculation. I know how options work, so if we were to give 2.0 million of options, it would be the value of our stock on the date of closing divided by the 2.0 million, in other words if our stock was 10.00 we would issue 200,000 options at a strike value of 10. But of course these only have value of the price of stock increases, is this how Black Scholes works?
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