Warrant (ex. @ 8c) can be bought for 20c...expires in 09...is this a good deal or am I missing something?
Not a huge profit, but one nonetheless? Apologies if my derivatives knowledge is not up to scratch.
reece55
16th-January-2007, 10:31 PM
Bigt
1) What security are we talking???
2) Is the euro or american? I presume euro, otherwise there would be an arbitrage op here.......
3) Is it a barrier warrant???
Unless there is a bloody good reason or a mix up, warrants normally trade at a premium to intrinsic value because they have embedded time value.
Cheers
wayneL
16th-January-2007, 10:35 PM
ratio?
reece55
16th-January-2007, 10:42 PM
Wayne
Of course....... forgot to ask the most obvious question...... HAHAHA!!!!
Cheers
bigt
17th-January-2007, 08:14 AM
Lost me there guys...ratio? Euro/American? I need to read up more. This is a warrant for an ASX listed company (miner)...I thought they were just like options, just with a longer expiry date. The quote is just a standard detailed one, lists the buy price, excercise price and expiry date. Any suggestionss where the ratio is detailed?
dubiousinfo
17th-January-2007, 08:54 AM
The ASX site www.asx.com.au/investor/warrants/index.htm has some good information on the basics of warrants that should answer most of your questions.
bigt
17th-January-2007, 10:04 AM
Thanks dubious...I have read the prospectus aswell, which states the listed warrant entitles the holder to one share in the compay at 8c. There is no mention of american / euro etc in the prospectus. Will keep checking this one out, may be an arbitrage opp as stated before.
