Market Value of Warrant (MVW)
The MVW is generally more than the TVW. The two values are only when (i) the TVW is very high or (ii) the warrant is near its expiration date. The maximum excess of MVW over the TVW generally is when the market pnce of shares is close to the exercise price of the warrant per share. The amount of time until expiration also effects the MVW warrant is to its expiration more likely the MVW would equal the TVW.
The warrant premium is the amount by which MVW exceeds the TVW. It resuts from a combination of (i) positive investor expactations and (ii) the ability of the investor to obtain larger potential return risk by trading in warrants instead of the underlying shares, (i.e. leverage opportunities).