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 Q&A, General question on stock market

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unpronounciable
post Jan 7 2011, 11:23 AM

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i have some questions on warrants

ok i know it has been asked for a few times, i've searched it, but just to confirm first

1. example:
stock AAA RM5.00
warrant AAA-CA RM0.19
conversion ratio: 10:1
conversion price: RM3.00
maturity date: next monday

so if i buy 1000 warrants of AAA-CA worth RM190.00, on monday i will have an option to buy 100 units of AAA at RM300
correct?
(if i'm not correct, pls correct me)

ok if that is the case, what happens on monday? at what time will i have the option to buy that 100 units of AAA stock? anytime of the day? or after 5:00pm (which means the next trading day)? how will i be approached to buy that stock at that special price? because currently i do all my trading online

thanks in advance!
unpronounciable
post Jan 7 2011, 04:39 PM

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QUOTE(unpronounciable @ Jan 7 2011, 11:23 AM)
1. example:
stock AAA RM5.00
warrant AAA-CA RM0.19
conversion ratio: 10:1
conversion price: RM3.00
maturity date: next monday
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QUOTE(cherroy @ Jan 7 2011, 02:59 PM)
All CWs in KLSE currently are cash settled.
You won't able to buy AAA stock with a -CA

Issuing bank will cash settled with weighted market average price, aka normally they take the average closing price 5 or 10 days (check the condition of the CA when listing time, can be varied) before the warrant expired at the final settlement price, and compared how much value left for the CA then return the money to you, (if there is  tongue.gif )
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ok for my example, if i take the average closing price as RM5.00, how much is my return?
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