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Reasons for a warrant's intrinsic value and price not adding up?
While on the surface it may seem that the warrant you described is trading below intrinsic value, there are many reasons why that might not be the case. It's more likely that you are lacking information, than having identified a derivative instrument that the market has failed to reasonably price. For instance, might there be a conversion ratio on the warrants other than the 1:1 ratio that you seem to be assuming? Sometimes, warrant terms are such that multiple warrants are required to buy one share of stock. Consider: The conversion ratio is the number of warrants needed in order to buy   (or sell) one investment unit. Therefore, if the conversion ratio to   buy stock XYZ is 3:1, this means that the holder needs three warrants   in order to purchase one share. Usually, if the conversion ratio is   high, the price of the share will be low, and vice versa. (source) Conversion ratios are sometimes used so that warrants can be issued on a 1:1 basis to existing stockholders, but where the potential number of new shares to be issued is much less. Conversion ratio is just one such example that could lead to perceived mispricing, and there may be other restrictions on exercise. Warrants are not issued by an options exchange using standardized option contract terms, and so warrant terms vary considerably from issuer to issuer. Even series of warrants from the same issuer may have differing terms. Always look beyond any warrant quote to find a definitive source of the warrant's precise terms — and read those terms carefully before taking any position.