Covered Warrants

Guide: Advanced Trading

Value a Covered Warrant (part 2)

As outlined in the first part of this chapter the value of a Covered Warrant can vary for a variety of reasons. The table below shows you which direction you would expect warrants to move in, based on different scenarios.

The table below shows what could happen to the value of call and put warrants if the key measures shown in the left hand column rise.

Calls

Puts
Underlying Asset Price
Exercise Price
Expiry
Dividend
Interest Rate
Implied Volatility

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