Trading Instalment Warrants - Aussie Stock Forums

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  1. #1

    Default Trading Instalment Warrants

    Hello everyone

    I've just been considering trading Instalment Warrants and am struggling to understand a few things.
    I've read through the classes on the ASX site but still don't quite understand a few things, hope I can get some help.

    I've seen some with an instalment price that is greater than the current share price.
    To quote a smarter man than I , Why is it so?
    Then there's others with very high strike prices, or both, why would someone invest in to either of those?
    All of the examples given in the ASX tutorials express the Instalment + Final payments to be nearly equal to the share price.
    Fine in theory, but in practice it doesn't seem to match up with warrants on offer.
    ASX Code: RIOJMG
    Strike Price: $83.99
    Expiry Date: 30/06/2010
    Ex Style: A
    Conversion Ratio: 1W = 1 Share
    Issue Size: 10M
    Last Price: $79.100
    First Traded: 07/02/2008

    On the ASX site this is given a valuation of $52.670, so it appears to be trading just a bit higher...
    RIO's last close was $43.930.

    Is there anywhere that lists all of the stocks that have warrants available?

  2. #2

    Default Re: Trading Instalment Warrants

    ..... Something else I forgot to ask.
    When selling the warrant are you guaranteed a sale if you meet the current ask price?
    I'm assuming that the issuer is required to buy the warrant to meet their conditions of 'making a market', correct?

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