Why do warrants that aren in the money become worth less as less as it gets closer to the expiry date?
Because time left is factored into the fair market value, warrants that don’t expire for a few years can be worth a lot more as the farther away from the expiry the more time can be the factor making the warrants more valuable. As it gets closer to the expiry date time plays less and less of a factor in valuing the warrants.
