QUOTE(investorsoh @ Jul 20 2010, 12:18 PM)
question to ask
if one company have CALL WARRANTS .
e.g
bjtoto - CD
the CALL WARRANTS belong to bank or bjtoto?
the issuer, aka the bank.
Added on July 20, 2010, 12:52 pmmy call warrant noob question:
for the recent expiration of PLUS-CB, i saw this:
QUOTE
CIMB INVESTMENT BANK BERHAD (CIMB)
EXPIRY OF AMERICAN STYLE NON-COLLATERALISED CASH-SETTLED CALL WARRANTS OVER
ORDINARY SHARES OF PLUS EXPRESSWAYS BERHAD (PLUS) (PLUS-CB)
We wish to announce that the PLUS-CB expired at 5.00 p.m. on 19 July 2010
(Expiry Date) and the Cash Settlement Amount shall be calculated as below.
Cash Settlement Amount
= Number of PLUS-CB x (Closing Price - Exercise Price) x (1/Exercise Ratio)
= Number of PLUS-CB x (RM3.5406 - RM2.95) x (1/2)
= Number of PLUS-CB x RM0.2953
The Closing Price of RM3.5406 is the volume weighted average market price of
the ordinary shares of PLUS for the 5 market days prior to and including the
market day immediately before the Expiry Date.
The Cash Settlement Amount, less all exercise expenses, will be paid to
warrantholders within 7 market days from the Expiry Date.
This announcement is dated 19 July 2010.
I understood the above except... does anyone know what's the usual exercise expenses??I am asking this because I have 100k TM-CI (RM0.09 now, TM at RM3.38),
type: non-collateralised european-style cash settled call warrants
expiry: 17-9-2010
conversion: 6:1
exercise price: RM2.69
so by right if i hold the call warrants until its expiry date (provided that TM is still at RM3.38 that time) I shall get:
= 100,000 x (RM3.38 - RM2.69) / 6
= 100,000 x RM0.115
=
RM11,500If i dump all 100k of TM-CI now, with market price of RM0.09, I'll only get back RM9,000 minus trading charges.
So my questions are:
1. anyone knows how much does exercise expenses cost for TM-CI?
2. cash settled call warrant means? cash settle with warrant holder after expiry?
thanks!
This post has been edited by freddie: Jul 20 2010, 12:52 PM