I still not sure how call warrant works. Sifu please teach me. Thank you!!
Take the same example in Bursa website for case study.
http://www.bursamalaysia.com/website/bm/pr...ts/basic_3.htmlCall warrant case.
Bought the warrant at 0.30
Exercise price is 11.00
Conversion ratio 5:1
From this case study, the break even share price is 12.50.
My question is, what will happen when the warrant expired?
Say, I spend RM300 to buy 1000 warrants at 0.30
if last traded mother share price is 12.50. After expiry date, the issued bank will pay me back 1000*0.30 = RM300? (meaning, I break even)
If last traded price is 10.00, the issued bank will not do anything? (meaning, I will loss my RM300 capital)
If last traded price is 14.00, the issued bank will pay me 1000*0.60 = RM600? (meaning, I earn RM300)
Please correct my mistake. Thank you warrant sifus!
This post has been edited by yok70: Apr 20 2012, 08:16 PM