However, risk aversion may not be the only motivation for early exercise
The company president and chief executive officer, Peter Barnes, said, 'The early exercise
of warrants provides Silver Wheaton with significant funds, at an attractive cost of capital, for the continued expansion of our portfolio of silver interests.
Zivney, 1991, "The Value of Early Exercise
in Option Prices--An Empirical-Investigation", Journal of Financial and Quantitative Analysis, 26:129-138
Exhibit 3 extends the example to a 10-period binomial with the expectation of early exercise
when the underlying share price reaches 1.
A second implication is that restrictions on early exercise
may have a significant effect on the firm's ESO cost.
The early exercise
program resulted in the exercise of 878,800 July 2011 warrants at $1.
The Company will make application to the Exchange for formal approval of an incentive program to encourage the early exercise
of outstanding warrants (the "Original Warrants") held by warrant-holders, other than insiders of the Company and pro group members who, in accordance with requirements of the Exchange, are not being offered the right to participate in the warrant incentive program.
did not receive consent from the bondholder trustee to the early exercise
of its put options to sell its investment in Westinghouse back to Toshiba Corporation (TOKYO: 6502).
Company to Offer Same Early Exercise
Terms to Other Warrant Holders
made an early exercise
of all its warrants and purchased 37,500,000 common shares of VG Gold for gross proceeds of $5,625,000.
The probability of early exercise
of the stock employee stock options has been taken into account.
Additionally, this early exercise
of the option is a clear acknowledgement of the promising data recently announced from the Phase 2 trials on our lead product candidate, ATX-101," said Keith R.