Posted by citychew_1886 > 2015-11-12 03:08 | Report Abuse

hi humblepie188,
thanks for the good sharing.
seem like very complicated to understand how to calculate the warrant intrinsic value huh . so if we invest the mother ,do we need to re-calculate the ratio ,for example PE ratio,if the counter we invest has issue call warrant ?

Posted by livingston > 2015-11-13 14:11 | Report Abuse

hi city, recommended to do so. The Call Warrant will not have effect to the mother price but what happen is when during the CW near to maturity(theta), traders/investors tends to sell down the mother share. They are expecting the mother price should goes down so that the CW holders will not be able to exercise their CW and expire worthless.

Posted by soon9913 > 2015-11-13 19:39 | Report Abuse

How can we know whether is American or European warrant?

Posted by soon9913 > 2015-11-13 19:40 | Report Abuse

And is American warrant better than European?

Posted by duitKWSPkita > 2015-11-13 19:44 | Report Abuse

Thanks sifu...looking forward to reading more article from you

Posted by livingston > 2015-11-13 22:37 | Report Abuse

Soon, american or european style is stated in the term sheet. You may check at bursa malaysia or if easier may use ur broking house online trading system and choose the warrants section.

Posted by livingston > 2015-11-13 22:40 | Report Abuse

There is no clear to say which ine is better, the trading method will be different as american can be exercised anytime before expiry, you may have the chances to so arbitrage trading if it moves to your favor. American requires more monitoring.

Posted by livingston > 2015-11-13 22:41 | Report Abuse

Hi duit, thank you for your comment. I am just a small bilis. We learn together

Posted by citychew_1886 > 2015-11-15 22:42 | Report Abuse

Hi livingston,
thanks for the reply ,so as you mention above ,(They are expecting the mother price should goes down so that the CW holders will not be able to exercise their CW and expire worthless) .so that the outstanding share will not change and so the EPS will not be diluted too . am i right ?

Posted by livingston > 2015-11-16 22:00 | Report Abuse

Yes. No dilution in eps. Cw currently is cash settlment. No longer conversion to mother price. Old time yes. Dilution only happens for company warrants.