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Vodafone Group Plc Message Board

shahhnt 1 post  |  Last Activity: Jul 8, 2015 4:17 PM Member since: Feb 18, 2004
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    Looks like good way to leverage BAC...

    by rbgambler99 Mar 26, 2015 6:04 PM
    shahhnt shahhnt Jul 8, 2015 4:17 PM Flag

    If my math is correct – For Jan 2019 – BAC Price of $28.00 and Dividend of $0.80/yr, return on stock is higher compare to warrants

    Current Price BAC -- $16.42
    Warrant Price -- $5.94
    Strick Price – $11.50
    Dividend -- 0.80/yr
    Total Cost at Maturity – $17.44 (11.50 + 5.94)
    Market Price on Jan 19 -- $28.00
    Return on Warrants if Exercised – 43%
    Return on Shares – 52% (if bought today at current price of $16.42)

    Only difference is with initial investment of 36% (warrant price) compare of full price of BAC shares.. one gets – 43% vs. 52% return

    Sentiment: Hold

VOD
37.78-0.04(-0.11%)Jul 31 4:00 PMEDT