I would like to ask the teachers of Guotai Junan, how to read the issuance announcement of warrants?

Hello! In response to your questions, we have made the following detailed answers for you:

For example, company A issues warrants with the company ** as the subject matter, assuming that the **market** at the time of issuance is 15 yuan, and the issuance conditions listed in the issuance announcement are as follows: issue date:

8 August 2005; Duration: 6 months; Type of warrant: European-style call warrant; Number of Issues:

50 million copies; Issue**: RMB; Exercise**: Yuan; Exercise Period:

expiration date; Exercise settlement method: **Payment settlement; Exercise ratio: 1:

1。The above clause tells investors that the warrants issued by Company A are equity subscription warrants, the premium of each warrant is RMB, the total amount of shares issued is 50 million, and the warrants can be bought and sold within six months, but the exercise must be made on the maturity date after six months. If the market price of Company A is 20 yuan at the time of expiration, which is higher than the exercise price of the warrant of 18 yuan, the investor can subscribe to the issuer for the market price of 20 yuan for the issuer of 18 yuan of company A, and make a net profit of 2 yuan per share; If the stock price of Company A is $15 at maturity, which is lower than the exercise price of $18, the investor can exercise the option and thus only lose the premium yuan shares.

I hope that our Guotai Junan ** Shanghai Branch can satisfy you!

Personnel: Guotai Junan**Account Manager Manager Yang (employee number 008407) Guotai Junan**——Know that the enterprise platform is willing to serve you!

Hello! Copy for you

We have made detailed answers to the questions for you

A warrant is a valuable ** for investors.

Warrants are one.

Copy has a price**, and the investor has the right (but not the DU obligation) to buy after paying the BAI premium.

Zhi specific period (or specific time point) according to the agreement DAO

**Purchase from the issuer or**Target**. Among them: the issuer refers to the listed company or the first company and other institutions; The premium is the price paid when purchasing the warrant; The underlying ** can be **, **, bonds, basket** or other**, which the issuer undertakes to purchase from the warrant holder or ** according to the agreed conditions.

Hello! In response to your questions, we have made the following detailed answers for you:

A warrant is an option to purchase or undering the underlying asset at an agreed time (or within a series of periods specified in the warrant agreement). Theoretically, anything that has a clear valuation and is legally accommodating can be used as an underlying asset, such as ** (a single ** or a basket of ** or similar stocks), stock price index, **, foreign exchange or other physical commodities, etc., but unless otherwise specified, the underlying asset we usually refer to is **, that is, the so-called"Underlying stock"。As a derivative financial product, warrants have unique investment value due to the expansion of trading functions.

Legally, a warrant is essentially a contract of rights, that is, after paying the premium to purchase the warrant, the investor has the right to subscribe for or sell a certain amount of the underlying asset (such as **, stock index, **, foreign exchange or commodities, etc.) according to the value structure and influencing factors (exercise price) of the warrant at an agreed price for a specific period or period. The intrinsic value of a warrant is the valorization of this right. Since warrants always come with certain conditions, their execution value is always the concretization of the difference profit obtained by the holder under certain conditions.

For warrants, the exercise value refers to the part of the price difference between the positive stock price and the strike price within a specific time, such as a ** stock price of 120 yuan and the strike price of 100 yuan, then the exercise value of the warrant, that is, the intrinsic value is 20 yuan; On the other hand, a put warrant has a strike value that is reflected in the difference between the positive stock price and the strike price within a specific period of time. The intrinsic value of the warrant, i.e., the value of the warrant's immediate performance, is the execution value of the warrant, and if the spread is zero or negative, the warrant has no execution value and its intrinsic value is zero. The value generation mechanism of warrants is exactly the same as that of options.

It is expressed by the formula: s-k when the strike value of the s>k warrant = {0 when s kk-s when the strike value of the k>s put warrant = {0 when k s formula, s represents the positive price and k represents the execution **. The intrinsic value of the warrant = the stock price - the strike price, the intrinsic value of the warrant is directly proportional to the stock price and inversely proportional to the strike price; Put warrants are the opposite.

If the spread is $20, the warrant has an exercise value of $20. However, from the actual transaction situation, the actual value of the warrant is not 20 yuan, but generally greater than 20 yuan, and this part of the difference is the time value of the warrant. The time value of a warrant is the premium that investors give to the expectation of fluctuations in the execution value, and the farther away from the expiration date, the greater the probability of fluctuations in the execution value of the warrants, the greater the profit margin for investors, and the higher the time value, that is, the time premium.

As the expiration date of a warrant approaches, its time value will tend to zero. The actual value of the warrant = the execution value + the time value.

I hope that our Guotai Junan ** Shanghai Branch can satisfy you!

Personnel: Guotai Junan**Account Manager Manager Hong (employee number 009301) Guotai Junan**——Know that the enterprise platform is willing to serve you!

At present, one of the most widely circulated equity split warrant schemes in the market is the negotiable warrant scheme. The negotiable warrant scheme means that non-tradable shareholders send negotiable warrants to tradable shareholders free of charge, and non-tradable shareholders must purchase negotiable warrants in the market if they want to convert non-tradable shares into tradable shares. Obviously, the concept of a negotiable warrant is completely different from the definition of a warrant, so a negotiable warrant is not a warrant, and if it must be said to be a warrant, then please note that this warrant is not a warrant.

Warrants are also known as warrants and warrants, and its English word is warrant, which is also called "warrant" according to transliteration. A warrant of ownership reflects a contractual relationship between the issuer and the holder, whereby the holder acquires a right from the issuer after paying a certain amount of price to the issuer of the warrant. This right allows the holder to purchase a certain amount of assets (e.g., indexes, a certain currency, etc.) from the warrant issuer at an agreed date or for a specific period in the future.

The holder acquires a right rather than a liability, and has the right to decide whether or not to perform the contract, while the issuer only has an obligation to be enforced, so the investor has to pay a certain price (royalty) to obtain this right. Warrants are bought and sold in exactly the same way as **, and are not like financial derivatives such as forwards and **, so they are very popular with investors. (The difference with forward or ** is that the holder of the warrant obtains not a liability, but a right, and the holder of the forward or ** needs to be responsible for executing the sale and purchase contract signed by both parties, that is, the specified relevant assets must be traded at a specified ** at a specified future time.)

Example: Suppose the current ** of Baosteel A shares is yuan, and some investors are optimistic about its trend in the next year, so they buy a call warrant with Baosteel ** as the subject matter, agree on ** yuan, the term is one year, and the premium is yuan per warrant. This indicates:

After the investor pays the warrant issuer, in the next year, no matter how much Sinopec rises (5 yuan, 6 yuan), the investor has the right to buy a share of Baosteel shares from the warrant issuer for a ** yuan. If Baosteel's share price is higher than the agreed ** at that time, it is advantageous for investors to exercise their rights. As long as the investor pays the warrant issuer to the yuan, he can get a share of Baosteel worth yuan** (you can also directly settle in cash:

When an investor requests to enforce a right, the warrant issuer pays the investor directly - $, and the net proceeds are equal to this part of the proceeds minus the premium, i.e. = $). If the stock price of Baosteel falls to 4 yuan at that time, it is obviously not cost-effective to buy ** worth 4 yuan with the agreed ** yuan, and the investor can choose not to exercise the right to buy Baosteel ** and only lose the right to pay the premium.

Hello, Guotai Junan Jiangxi Branch Enterprise Platform is happy to answer for you! Right.