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From: Graham
Date: 8/11/2007
Time: 10:07:54 PM
Remote Name: 203.144.160.242
There are a lot of strategies, in theory. You could run a valuation on a warrant, and a particular option. If the warrant appears undervalued relative to the option, you could buy it and, say, write a call. If both the warrant and option seem overvalued, you could move into the common stock. You can short warrants too. The possibilities are endless. One limitation, however, is that most U.S. warrants underlie smallish companies. These companies usually don't have options.