1. 99% of the call warrant out there is not convertible to mothershare, but using cash settlement when matured, aka the issuing party will pay you money in cash for the differentiate value between the conversion price vs mothershare price.

2. Not necessary, it depends on its conversion price/exercise price. Mothershare price > exercise price, the warrant has its value.

3. Yes, if the mothershare doesn't rise above Rm2.5, the warrant worth nothing when matured. It is more "worth" on paper to buy the mothershare directly.

But for speculator pov, why the warrant is not trading at 0.005, since it worth nothing currently?

Eg. with buying mothershare now at Rm2.2, then if on 2019, it rises to Rm3.5, you earn Rm1.3
1.3/2.2 = 59% gain

With buying CW at RM0.115, the CW worth at Rm3.5 = (3.5-2.5)/4.5 = RM0.22
You gain 0.105
0.105/0.115 = 91% gain, aka gearing effect.

Another point is, you need lesser capital with CW compared to mothershare but at the expense of paying the premium price.

CW biggest enemy is always time, aka its worth shrink when approaching near and nearer to maturity.

Yes, they will pay by cash to you.

Please be reminded, as CWs holder, you are not entitled for company dividend (if the company declared dividend), and CWs generally has relative short life across. (less than 1 year)

The reason why many CWs holder lose out, is they are paying a premium at the start.

Many CWs are issued at high premium range from 10~30%, and it is not easy for a stock to rise up such a magnitude in short period of time before maturity.