In warrants, how the stock price and price change as the time approaches the exercise date

The warrant can be understood in this way, ** is the house, the warrant is the deposit that you go to buy the house, and during the deposit period, you have the right to buy, the house. If the price of the house rises, you will be according to the original agreed ****, if it does not rise, but falls, do not buy, waste the deposit, when the time is near, the warrant is not worthless, after the last 1 day of the warrant will be invalid, value = 0, so close to the exercise date, the ** of the warrant will fall and finally return to 0, for the subject matter.

There is no necessary connection between it and the fundamentals of the company.

and economic cycles.

As well as their own industry-related has nothing to do with warrants.

Warrants can be divided into call warrants and put warrants. Investors who call warrants can only make a profit if they are the relevant underlying **future**, while **put warrant investors can only make money when the underlying **future stock price**.

In terms of exercise, warrants are also divided into European and American warrants. American-style warrants allow holders to exercise their rights at any time from the date of listing to the expiration date of the warrant, while holders of European-style warrants can only exercise their rights on the expiration date, and European-style warrants are the most common type of warrants in Hong Kong.

Whether it is a call warrant or a put warrant, they have the following main characteristics:

The first is the leverage effect.

Second, it is time-sensitive.

Warrants have a time value, and the time value decreases as the expiration date of the warrant approaches.

Third, the holder of the warrant enjoys different rights from the holder of **.

The holder of the warrant is not a shareholder of the listed company, so the holder of the warrant does not enjoy the basic rights of the shareholder, such as voting rights, participation.

and dividends and other rights.

Fourth, the particularity of investment returns.

For warrants, if the investor judges the underlying stock price correctly, he will get a greater return.

To put it simply, the operation of put warrants is just the opposite, when you are bullish, you need to sell put warrants, and when you are short, you need to put warrants. However, since warrants are a new thing, there may be something unusual at first.

Due to the special nature of warrants, the risk is much larger than that of the warrant, so it is best for you to participate in a small amount.

Warrants are traded on a T+0 basis and can be bought and sold multiple times on the same day.

It's hard to say, but it depends on whether it's an in-the-money exercise or an out-of-the-money exercise. However, it is certain that the time value of the warrant will be reduced.

If the put and call options with the same expiration date have the same **, exercise** and expiration dates on the same underlying asset, this is very rare in the real market, and it is almost impossible to say that this is very rare.

The ** of an option is determined by a number of factors, the most important of which are the strike price**, the underlying asset**, the time remaining, the volatility of the underlying asset, and the risk-free rate。Put and call options are usually not exactly the same in the market, as they differ in their return structure and risk characteristics.

Typically, the ** of a put option will increase with the ** of the underlying asset, while the ** of a call option will increase with the ** of the ** of the underlying asset. As a result, put and call options usually go in opposite directions.

In the options market, changes in factors such as the underlying asset**, volatility and market expectations will affect the options**. The difference in options is also formed by investors in the market according to different market views and trading strategies. In actual trading, the ** of an option is determined by market supply and demand, so there is usually a difference between the ** of a put option and a call option.

Answer] :d Answer] d. Analysis:

When the exercise of warrants and share options** is less than the average market of common stock for the current period**, the dilution of warrants should be considered. Because investors may exercise the rights contained in warrants and share options to buy **, the number of common shares of the enterprise will increase. Hence the choice D. Trembling.

False] Answer].

Analysis] When the exercise of warrants and share period splitting rights** is lower than the average market of ordinary shares in the current period**, its dilution should be considered. If the exercise ** is higher than the average market of ordinary shares in the current period**, the holders of **Lu Bi will not exercise the option.

Answer] Honor: B

This question examines the determination of the exercise price of ** options.

**The options exercise price is determined in the following ways: the present value method; Equal present value method; Present value unfavorable method;

It is not mentioned in the method of unequal wax virtual envy value, which is an option to interfere with the rotation;

Answer]: a, b, c

This question examines the method of determining the exercise price of a stock option. There are generally three methods to determine the exercise price of a stock option: (1) the present value method, that is, the exercise price is lower than the current stock price; (2) Equivalent present value method, i.e., the strike price is equal to the current market price; (3) The present value unfavorable method, that is, the exercise of the right with the price is higher than the market price. Hitch.

Answer]: B Protective Put Period Dou Tolerance refers to the combination of **plus put option, that is, after buying 1 share**, and then buying 1 share of the ** put option, if the stock price of the option expiration date is greater than the exercise**, the net income of the option is 0, and the net profit and loss of the option is 0 Option** Blind option**. Since the net profit or loss of the stock price on the expiration date is the bid price, the net profit or loss of the protective put option is the bid price of the option, i.e., option A is correct.

A covered call option is the purchase of 1 share of ** and at the same time ** 1 share of call option. If the price of the abrasive peel option on the expiration date is greater than the exercise**, the net profit or loss of the covered call option Exercise** **Bid price Premium, since the exercise ** is not necessarily equal to the **bid price, therefore, option B is incorrect. A long knock is the simultaneous purchase of a ** call option and a put option, both of which have the same execution** and expiration date.

If the stock price of the option expires greater than the strike **, the put option will not be exercised and the call option will be exercised, therefore, the net profit or loss of the long knock stock price on the expiration date of the strike execution** the amount of the long knock investment, i.e. option c is correct. A short knock is a call option and a put option at the same time, both of which have the same strike and expiration date. If the stock price on the expiration date of the option is greater than the exercise**, then the put option will not be exercised and the call option will be exercised, therefore, the net profit or loss of the short knock Net income from the short call option Premium income (stock price on the expiration date Exercise**) Premium income Exercise** Stock price on the expiration date Premium income, i.e. option d is correct.