Hi Jay, first time reading articles prepared by you and a newbee in investing. Good write up and easy to understand. Hope you will post the 2nd part to the article as well. :)
I have a beginner question. If I hold call warrant until expiry and the option is in the money, what should I do to get return/money from investment bank? Or the return will be auto bank in to my account?
Happyleroy you have not given the expiry date of the warrant. You need to buy 8 warrant to be entitled to exercise your option by paying 8.80 to receive the mother share at expiry. That means your cost will be 11.56 for 1 share of ABC. If ABC share drop below 11.56 at expiry you will be out of the money. Am I right? You will only profit if the mother share price goes above 11.56.
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....
connie
37,452 posts
Posted by connie > 2017-06-08 11:09 | Report Abuse
thanks so much jay ... appreciate greatly the effort !