Category: Money tips Release Date: 2006-04-25
Q: Warrants is to do more than put warrants is short, then the put warrant is not the first and sold it to buy it?
A: Like warrants, put warrants are the first to buy after the selling, buying put warrants in the future to determine the right price to sell the stock accordingly. Buy the right, the right to sell is also just the right direction is down.
Q: The international and domestic options What is the difference?
A: The international community can generally be short of options, do not mean put option, but the short option. There are four operations, opening the granary to buy options, opening the granary to sell options, open interest to buy options, sell options, open interest. Baosteel Warrants 2 yuan for example, when you think warrants the high price of Baosteel is expected to occur relatively large future prices fall, you can sell 2 yuan options when opening the granary, 1.1 yuan to buy options when the open interest , you warrant a profit of 0.90 yuan each, so the international warrant prices were relatively reasonable, and will not be so funny domestic prices. However, puts great risk, generally only market maker, or other big investment banks JP Morgan puts it, the CAO is a call option to sell the oil has been eliminated.
Q: If I want to buy New Steel and Vanadium of Put Warrants, the need to re-signing of "risk revealing book"?
A: The time being, there is no relevant provisions, you can consult your pre-market where the securities business departments.
Q: Baosteel Warrants priced too high, I do not dare to participate, put warrants, if introduced, will also let I can not participate?
A: Yes this is possible, but in our current A-share market, the charm is that it warrants a strong speculative, if really want it back at a reasonable price, I am afraid that many investors will not participate in trading warrants, but because of warrants a high-risk nature of the transaction, ordinary investors should invest in the proportion of control, preferably no more than 10%. (KK Ling, ZHOU Ke-Jing)
