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Hi Marcella,

AIG Warrants are kind of like giant LEAP Calls. They are a sort of call that expires in January of 2021 with a strike of $45. If I am understanding correctly (this is my only experience with warrants), the bet is that AIG will be valued at well over $63 per share (that is the $45 strike plus the $18 warrant) at expiration, making these quite profitable (if not traded away first). What is fair value for a purchased call or a warrant is not something that I know how to calculate, so I will leave that to the experts here, but thought that a little background might be useful.

Regards,

Lon.
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