The bank's TARP B warrants are relatively obscure securities tied to BofA's stock price performance. They were issued following the financial crisis with a strike price of $30.79, according to Bloomberg data.
According to Bloomberg, the warrants are now set to pay out after BofA's stock jumped past that point for the first time on Friday, Jan. 12, when shares finished trading at $31.19.
The warrants last traded at $2.86, which was the highest price in six years. For the investors who bought the warrants at their record low price of just 7 cents in 2016, a more than 4,000% return is on the way.
Bank of America stock continued gains into Tuesday, rising slightly on the sessions. The Charlotte-based bank reports fourth quarter earnings before the market open Wednesday, Jan. 17.
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