Category: Money Tips Date: 2006-03-30
Q: At present, liquidity in the SSE trading warrants (including the issuance and creation of) a total number?
A: As of December 28, 2005, in the Shanghai-listed Baoshan Iron and Steel trading JTB1, Wuhan Iron and Steel JTB1, Wuhan Iron and Steel JTP1 and airport JTP1 the warrants, the number of its issuance, and the total amount of liquidity creation see Table.
Q: Airport JTP1 and Wuhan Iron and Steel JTP1 so different?
Answer: Airport JT P1 with the previous listing of Wuhan Iron and JT P1, etc. The main difference between European warrant is the right model of the airport JTP1 line belongs to the American warrants. In other words, December 23, 2005 listing of the airport JTP1 in March 2006 after 23 until December 22, 2006 the period prior to row of the right at any time.
Q: What are American-style warrants airport JTP1, investors in the end when the line is good right?
A: The line at the airport right JT P1 period, investors in the end how to do this right, it needs to look at specific circumstances. The right line because investors actually received only the intrinsic value of the warrants at the same time to give up the time value of warrants and trading of premium.
Assumed March 24, 2006, Baiyun Airport share price was 6.80 yuan, according to the airport JTP1 terms of the exercise price of 7.00 RMB on the setting, investors OK right, first of all from the market in accordance with the price of 6.80 yuan to buy a share Baiyun the airport, and then follow the price of 7.00 RMB sold to the Guangdong Airport Management Corporation, warrants each get 0.20, while the theoretical value of the warrants also include the time value of 0.55, investors better choice in the market to 0.75 Yuan sold warrants, if the market warrants, taking into account general price higher than the theoretical value of the status quo, investors should not choose the right line.
Of course, if the right, where feasible, during the Baiyun Airport in the stock price far below the exercise price, investors may be the right lines. Also assumed that March 24, 2006, Baiyun Airport shares at 4.00 yuan, the theoretical value of the warrants at this time of 3.00 yuan, the time value of 0, while the investors to choose the right line, each warrant get 3.00, in the next 9 months, also get interest on deposits. If the warrants at this time in accordance with the theoretical value of the transaction, investors choose the right line is appropriate.