Warrant premium


 

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Warrant premium

The extra amount you pay for a warrant over and above its intrinsic value. The premium on a warrant is calculated as: (the price of the warrant) - (difference between the exercise price and the price of the underlying asset). So if a warrant costing 8p gives you the right to buy a share at 75p, and that share is currently trading at 70p, the premium is 3p (8-5).



Similar Matches

Put warrant

Put warrant

A warrant which gives its holder the right to sell an underlying instrument (e.g. a share), and which would therefore normally be used by an investor who thought the price of the underlying asset was due to fall.


Perpetual warrants

Perpetual warrants

Warrants that have no expiration date.


Yield to warrant call

Yield to warrant call

Applies mainly to convertible securities. Effective yield of usable or synthetic convertible bonds determined against the first date at which the warrants can be called.


Plain vanilla option/warrant

Plain vanilla option/warrant

An option or warrant with fairly standard exercise terms and no special clauses.


Home Warranty Insurance

Home Warranty Insurance

Private insurance insuring a buyer against defects (usually in plumbing, heating, and electrical) in the home he has purchased. The period of insurance varies and both new and used homes may be insured.


Further Suggestions

gearing of warrant
Detachable warrant
barrier warrant
Ex warrants
Warranty
warrant
call warrant
Warranty
Limited warranty
Breach Of Warranty
warranty
corridor warrant
Central Warrants Trading Service
Subscription warrant
Harmless warrant
covered warrant
Yield to warrant expiration
leverage on a warrant
Warranty Deed
basket warrant
corporate warrant
exotic warrant
trigger warrant


 
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