Hi,
Sorry if this is stupid or already discussed, but what is the difference between a call option and an opening Weekend Warrant?
Let's take the example of today's simultaneous IPO of Super 8 OW and Super 8 - $40 Call.
The call will cash out (Box office Fri-Mon minus 40) and my net gain will be that amount minus $2 if I buy the call when it is launched (launch value).
The Warrant will cost me $40 to buy at IPO and will cash out, if I am correct, (Box office Fri-Mon minus 40) (exact same as call). Difference is I won't lose the $2 that I would lose on the Call.
So what is the point of getting the call when I can get the warrant where I can spare $2?
Thank you.