Warrants are issued by the issuer of index securities or a third party other than the issuer (hereinafter referred to as the issuer), which stipulates that the holder has the right to buy or sell the underlying securities from the issuer at an agreed price within a specific period or a specific maturity date, or to collect the securities with the settlement difference by cash settlement. Warrant is a kind of stock option, which is called "warrant" in Hong Kong Stock Exchange. Warrant is a kind of securities that the holder has the right to buy or sell the underlying stock from the issuer at an agreed price (exercise price) within a specific period or a specific maturity date, or to collect the settlement difference by cash settlement.

Warrants can be divided into warrants and warrants. Warrant holders can buy the underlying shares from the issuer within a specific period or a specific maturity date, similar to the current popular convertible bonds with convertible shares; The right of the put warrant holder is to sell the underlying stock at the agreed price. What is a search warrant?

Author: unknown article source: WWW hits: 6223 update time: June 6, 2005

The essence of warrants reflects the contractual relationship between the issuer and the holder. After paying a certain amount of money to the warrant issuer, the holder obtains a right from the issuer. This right enables the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future.

The holder obtains a right rather than a responsibility, and has the right to decide whether to perform the contract, while the issuer only has the obligation to be executed, so in order to obtain this right, investors need to pay a certain price (royalties). The difference between warrants (in fact, all options) and forwards or futures is that the former holder is not a responsibility, but a right, while the latter holder is responsible for executing the sales contract signed by both parties, that is, the relevant assets must be traded at the specified price and the specified future time.

From the above definition, we can easily see that warrants can be divided into call warrants and put warrants according to the exercise direction of rights. Call warrants belong to "call options" and put warrants belong to "put options". Here is a case of warrants (see table 1).

The investor bought 65,438+00,000 warrants, indicating that he can buy 65,438+00,000 SSE 50ETF at a price of 0.78 yuan on any trading day from June to September. Because the warrants are settled in cash, investors will not be required to pay ETF when exercising, but will pay according to the ETF price and exercise price at the time of exercising. Generally speaking, when the SSE 50ETF is less than 0.78 yuan, investors will not put forward the right to exercise; Only when the SSE 50ETF is higher than 0.78 yuan, investors will put forward the right to exercise. When exercising rights, the profits of investors are shown in Table 2.

Table 1

The underlying asset SSE 50ETF(5 10050. SH)

The current price of the underlying asset is 0.75

The exercise price is 0.78 yuan.

The exercise ratio is 1, that is, 1 warrants can be subscribed 1 SSE 50ETF.

Royalty is 0.036 yuan.

The exercise period is June 2005 16-September 2005 16.

Settlement method cash settlement

Summary of settlement rules at the time of exercise. If S is lower than or equal to the exercise price, the issuer of each warrant shall pay 0 yuan to the exerciser.

If s is higher than the exercise price, the issuer of each warrant shall pay to the exerciser.

(S- exercise price) × exercise proportion yuan, where S is the market price of SSE 50ETF when exercising.

Table 2

When exercising, investors with the price of 50ETF get income (yuan) and net income (yuan).

0.70 0 -360

0.78 0 -360

0.8 16 360 0

0.85 700 340

1 2200 1840

1.2 4200 2840

The essence of warrants reflects the contractual relationship between the issuer and the holder. After paying a certain amount of money to the warrant issuer, the holder obtains a right from the issuer. This right enables the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future.

The holder obtains a right, not a responsibility, and has the right to decide whether to perform the contract, while the issuer has only the obligation to be executed. Therefore, in order to obtain this right, investors must pay a certain price (royalties). Warrants (in fact, all options) focus on today:

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The difference with forward or futures is that the former holder is not a responsibility, but a right, while the latter holder has the responsibility to execute the sales contract signed by both parties, that is, the specified related assets must be traded at the specified price and the specified future time.

Respondent: super 19862008- probation level 1 1- 12 09:20.

Warrant is a kind of securities. After paying the premium, the investor has the right (but not the obligation) to buy or sell the underlying securities from the issuer at the agreed price for a certain period of time (or a certain period of time). These include:

Issuer refers to institutions such as listed companies or securities companies;

Royalty refers to the price paid when purchasing warrants;

The underlying securities can be individual stocks, funds, bonds, a basket of stocks or other securities, which are the securities that the issuer promises to buy or sell from the warrant holders according to the agreed conditions.

Interviewee: gay ety 859 1- Trainee Magician II 1- 12 09:34.

Long-term bullish

election

Respondent: super gehui- probation period level 1 1- 12 20:38.

Warrant is a contractual relationship between the issuer and the holder, and the holder has the right to buy or sell a certain amount of assets (such as stocks) or rights from the warrant issuer at an agreed price within an agreed period or time. The warrants for buying stocks are called call warrants, and the warrants for selling stocks are called put warrants (or put warrants). Warrants are divided into European warrants and American warrants. The so-called European warrants are warrants that can only be exercised on the due date. The so-called American warrants are warrants that can be exercised at any time before the expiration date.

The value of warrants consists of two parts: one is the intrinsic value, that is, the difference between the underlying stock and the exercise price; The second is time value, which represents the holder's expectations and opportunities for future stock price fluctuations. Other things being equal, the longer the warrant lasts, the higher the warrant price; American warrants are more expensive than European warrants because they can be exercised at any time during the duration.

Interviewee: Who is fighting for the front 1984- the level of children 1- 17 13:39.

The essence of warrants reflects the contractual relationship between the issuer and the holder. After paying a certain amount of money to the warrant issuer, the holder obtains a right from the issuer. This right enables the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future.

The holder obtains a right, not a responsibility, and has the right to decide whether to perform the contract, while the issuer has only the obligation to be executed. Therefore, in order to obtain this right, investors must pay a certain price (royalties). Warrants (actually all options

The difference with forward or futures is that the former holder is not a responsibility, but a right, while the latter holder has the responsibility to execute the sales contract signed by both parties, that is, the specified related assets must be traded at the specified price and the specified future time.