Interest rates are also another variable.

Let's pretend you could borrow money for nothing BUT you did have to pay it back.

You could buy warrants in a bunch of companies, but risk losing some of it IF the stock didn't get above the exercise plus your initial investment by the time the warrants expired

You could lose it all of the stock doesn't get above the exercise price by the time the warrants expired.

Now if you bought stock and let's say the company you bought didn't go up a penny, you could return the money you borrowed and break even.

In the Black-Scholes model will factor in interest rates

If you could only borrow money at say 20%, then the you'd likely be paying off too much on interest to offset the warrant risk.

If you could borrow money in single digits, then that extra interest cost you might be paying may be worth offsetting the risk.

It's always best to talk to a financial advisor if even thinking about borrowing money or buying options.

The risk is higher, but so can the reward

I do think you picked up something in my post yesterday and why I pointed out an example

The ratio of VERBW to VERB might not always be what people think or know as the sp goes up.