How to value a call n put warrant?

2008-01-25 7:24 pm

all call and put warrant have a strike price and expiry date. If for example, there are two warrants (call) ; stock (2628) current price at $32 ; A warrant) execute price at $38 expiry aug08. B warrant ) execute price at $42 expiry feb 09. IF i speculate the price will rise, which one shall I choose?

更新1:

Ok understood. But how come I realize there are some call warrants with a higher spread price than the current price ; their premium will rise at a higher percentage(on the same date) than the one with the closer spread px? Is there a formula to calculate? Is that something to do with the 引伸幅?

回答 (1)

tat

2008-01-26 8:45 am

✔ 最佳答案

A warrant ($38) is better because the execute price is near the 2628 currect price ($32), expiry aug08 is ok, no problem.

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