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 LYN stock market FAQs & Guide, T+3, Dividends, commissions/fees, etc...

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jojo777
post Jul 30 2009, 11:52 AM

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Sifu, need your advice on this,

Say I want to buy call warrant of ABC-05 which currently is at USD0.10 and expiry date is May 2009, purchase total of 100 unit,

So cost to me is100 x xUSD0.10 = USD10 x 3.5 = RM35
Plus brokerage fee = RM12
Total cost = RM47

Say after 1 month price increase to USD0.20, if I sell it,
100 x USD0.2 = USD20 x 3.5 = RM70 – RM12 = 58

Is that how it’s calculated? From your tutorial, you mention that there is a target price, how do I see whether the warrant that I buy will reach the target price?

jojo777
post Jul 31 2009, 10:57 AM

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thank you sifu...but yesterday when i re-calculate base on the tutorial posted in this forum i found out another info...
Example
Current CITIGRP common stock price : USD2.95 (let's use this as example)
Current CITIGRP-C2 price : USD0.095
Exercise price : USD3.25
Exercise ratio : 50 to 1

For me to convert to common share because i wanted to sell off the warrant:
Warrant price for 1 mother share = USD0.095 x 50 = USD4.75
Convert to mother share = USD4.75 + USD3.25 = USD8

if the above calculation is correct, meaning i will have to wait until the common share reaches USD8 in order for me to break even? pls advice sifu



jojo777
post Jul 31 2009, 02:47 PM

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thanks for your advice.... sifu...hehehehe

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