No lah. If you have intimate knowledge on call warrant, it is safer and more lucrative. Eg. DRBHCOM-CI from 2 sen to 23 sen in less than a month (Gain more than 1000% !!!).

This post has been edited by tikusniaga: Feb 5 2012, 07:29 PM

Agreed. I just bought DIGISTA WA last week and it already gain >10%

no

Thanks.

Another question,

What exactly gearing means?

It says here

Gearing = Underlying Price/(Warrant Price x Exercise Ratio)

What can I conclude from the gearing value?

Same thing for cash settlement.. what does it tell for a certain warrant?

Gearing calculates the level of the leverage of the son against the mom.
Cash settlement normally for call warrants.

Is the exercise price fix or keep changing?

exercise price is fixed

how to check warrant expiry date at itrade cimb?

What is the formula used to convert warrant or call warrant to mother share ?

Thanks.

hi.
I got some question on warrant conversion.. can anyone pls shed some light to me..

for an example if I hv bought ifcamsc-wa 10000 unit, at the price of RM0.765..
coversion ratio is 1 to 1
exercise price is rm0.10..
expired date: february of 2016

lets assume by in 2015 1st of February,
mother share =rm1.00,
while warrant =rm0.850

after conversion, I will get 100,00 mother share of value RM0.865 as 0.765+0.10=0.865..
so lets ASSUME that if I sell at that day at rm 1(I know it’s impossible tat selling day=conversion day),I will get profit of RM1350 as
RM1x10000-RM0.865x10000=RM1350?

many thanks