Is exercise of warrants a good or bad investment strategy?

Answer 1

Exercise of warrants can be a potentially good investment strategy if the warrant price is lower than the market price of the underlying asset. It allows investors to buy the asset at a predetermined price, potentially leading to profits if the asset's value increases. However, it also carries risks, such as the possibility of the asset's value decreasing or the warrant expiring worthless. Investors should carefully consider their financial goals and risk tolerance before deciding to exercise warrants.