Warrant premium - The extra amount you pay for a warrant over and above its intrinsic value. The premium on a warrant is calculated as: (the price of the warrant) - (difference between the exercise price and the price of the underlying asset). So if a warrant costing 8p gives you the right to buy a share at 75p, and that share is currently trading at 70p, the premium is 3p (8-5).
Warrant premium : the extra amount you pay for a warrant over and above its intrinsic value. the premium on a warrant is calculated as: (the price of the warrant) - (difference between the exercise price and the price of the underlying asset). so if a warrant costing 8p gives you the right to buy a share at 75p, and that share is currently trading at 70p, the premium is 3p (8-5).