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

Detachable warrant

Detachable warrant

A warrant entitles the holder to buy a given number of shares of stock at a stipulated price. A detachable warrant is one that may be sold separately from the package it may have originally been issued with (usually a bond).


Yield to warrant expiration

Yield to warrant expiration

Applies mainly to convertible securities. Effective yield of usable convertible bonds determined by the expiration date of the applicable warrants.


Warranty

Warranty

A legal, binding, promise, given at the time of a sale, whereby the seller gives the buyer certain assurances as to the condition of the property being sold. Warranties as to real property have taken on a lessor role with the increase of the use of title insurance.


Covered warrant

Covered warrant

A security which gives the holder the right to acquire a share or bond at a specific price and date. Covered warrants are created by an investment bank or some other financial institution, and are not issued by the company itself.


Central Warrants Trading Service

Central Warrants Trading Service

The Central Warrants Trading Service is the automatic execution order book system on the London Stock Exchange.


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