Which of the following is not a factor that affects the premium of a warrant?
A) price volatility of the common stock
B) current price of the warrant
C) dividend on the common stock
D) potential leverage of the warrant

Question

Quizplus · Accepted Answer

The current price of the warrant itself is not a factor that affects its premium. The premium of a warrant is influenced by factors such as the price volatility of the common stock, dividends on the common stock, and the potential leverage of the warrant, but not directly by its own current price.

Which of the Following Is Not a Factor That Affects