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All expand | All closedGeneral Questions
What should be noted when choosing warrants/CBBCs?
Strike price, implied volatility*, conversion ratio and maturity date are all basic factors that affect derivatives.
*For the trend of implied volatility, please refer to the issuer’s website or Hong Kong Stock Exchange website
*For the trend of implied volatility, please refer to the issuer’s website or Hong Kong Stock Exchange website
When will the CBBC be forcibly called back?
5 to 10 working days.
When a CBBC is forcibly called back, how should I calculate its residual value?
There will be an observation period during the trading session and the next trading session.
Bull contract: The settlement price is the lowest of the relevant assets during the observation period. If the strike price is triggered, the bull contract has no residual value.
Bear contract: The settlement price is the highest level of the relevant asset during the observation period. If the strike price is triggered, the bear contract has no residual value.
Bull contract: The settlement price is the lowest of the relevant assets during the observation period. If the strike price is triggered, the bull contract has no residual value.
Bear contract: The settlement price is the highest level of the relevant asset during the observation period. If the strike price is triggered, the bear contract has no residual value.
Does the purchase of warrants/CBBC mean the purchase of underlying shareholders’ equity?
No, owning derivative product does not mean owning its shareholders' equity, because the products have been bought and sold in consideration of the company’s visible behavior, such as dividends. Ex-dividend date is not going to affect the price of warrant/CBBC.
