The purpose of this blog is to ask you to chase Insas W (TP 35sen with exercise price RM1) which will be listed tomorrow. Is it worth 57% premium as calculated? Why so high? Why not trade at discount like Pesona W?
35 sen too high for Insas WB? Just sold some at this price this morning to reduce my weighting in Insas and its derivatives. The 35 sen as valued in the article was achieved in less than one and a half months. Still got 4 years 10 and a half months before it matures.
What say you donfollowblindly?
You must understand the value of WB, with 5 years to maturity, has its value in time value, not in intrinsic value. It pays for you to learn about derivatives pricing from me.
As risk free rate increases, "i" increases and hence the value of PA, P, will be lower. No doubt about that.
But what if interest rate goes down?
Who is so certain that interest rate will go up, and not staying the same, or go down? Statistically, nobody can predict the direction of interest rate correctly and consistently.
Not forgetting that Insas PA can be used as RM1 cash for conversion of warrant.
@TheContrarian, you really geng, managed to dig out such an old article written in 2015. I have google last month when I am studying all types of warrant, found this article informative..IMHO,we should arm ourselves with info before investing..happy investing.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
fortunebullz
2,000 posts
Posted by fortunebullz > 2015-04-14 20:15 | Report Abuse
Bought warrant 27 cents amid heavy selling! Sold 33 cents! 22% return!