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NewsFor newbie: How to calculate hsi-h3 premium and other call warrant premium.
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For newbie: How to calculate hsi-h3 premium and other call warrant premium.
by phoenix777 on Sun 09 Oct 2011, 10:43
HSI H3 is a put warrant so this is how it goes. Jointly contributed by xettie and kkt
this is the data u gave :
ex price is 24000, mom price is 17647, ratio is 4000:1 and h3 price is 0.79
according to my understanding, u nid 2 convert h3 price from RM --> HKD because the mom price (HKD17647) and ex price (HKD24000) are both in HKD, not RM.
The conversion rate now is roughly RM1-->HKD2.46346
the formula is :
(WP*CR) + USP -EP
-------------------- * 100%
USP
which is :
(0.79*2.46346*4000) + 17647 - 24000
--------------------------------------- *100% = 8.11%
17647
hopefully this explanation makes u clear of calculating put warrant. For more information, please refer to
http://warrants.cimb.com/WRT/upload/warrantsDigest/Warrants_Digest_07_october_2011.pdf
this is the data u gave :
ex price is 24000, mom price is 17647, ratio is 4000:1 and h3 price is 0.79
according to my understanding, u nid 2 convert h3 price from RM --> HKD because the mom price (HKD17647) and ex price (HKD24000) are both in HKD, not RM.
The conversion rate now is roughly RM1-->HKD2.46346
the formula is :
(WP*CR) + USP -EP
-------------------- * 100%
USP
which is :
(0.79*2.46346*4000) + 17647 - 24000
--------------------------------------- *100% = 8.11%
17647
hopefully this explanation makes u clear of calculating put warrant. For more information, please refer to
http://warrants.cimb.com/WRT/upload/warrantsDigest/Warrants_Digest_07_october_2011.pdf
_________________
come here broke....but learn so much from maxims sifu....now if possible i want to help others too
phoenix777- Consulting Member
- Posts: 11850 Credits: 12856 Reputation: 394
Join date: 2011-02-03
Location: Malaysia
Job/Hobbies: eating good food
Stock Exposure: 1 year
Stock Portfolio: empty handed
Re: For newbie: How to calculate hsi-h3 premium and other call warrant premium.
by phoenix777 on Sun 09 Oct 2011, 10:46
Premium
Premium measures the percentage over the underlying security price required to break-even upon exercise or on expiry
of the warrants:
Premium (Call) =
(Call Warrant Price x Exercise Ratio) + Exercise Price - Underlying Security Price
Underlying Security Price
Premium (Put) =
(Put Warrant Price x Exercise Ratio) + Underlying Security Price - Exercise Price
Underlying Security Price
Gearing
Gearing ratio measures the exposure of warrants to the underlying security:
Gearing =
Underlying Security Price
Warrant Price x Exercise Ratio
Effective Gearing
Effective Gearing is a measure of the actual leverage, which is computed as the theoretical % change in the call warrant price for a 1% change in the underlying security price:
Effective Gearing = Gearing Ratio x Delta
Implied Volatility
The estimated volatility of a warrant.
Premium measures the percentage over the underlying security price required to break-even upon exercise or on expiry
of the warrants:
Premium (Call) =
(Call Warrant Price x Exercise Ratio) + Exercise Price - Underlying Security Price
Underlying Security Price
Premium (Put) =
(Put Warrant Price x Exercise Ratio) + Underlying Security Price - Exercise Price
Underlying Security Price
Gearing
Gearing ratio measures the exposure of warrants to the underlying security:
Gearing =
Underlying Security Price
Warrant Price x Exercise Ratio
Effective Gearing
Effective Gearing is a measure of the actual leverage, which is computed as the theoretical % change in the call warrant price for a 1% change in the underlying security price:
Effective Gearing = Gearing Ratio x Delta
Implied Volatility
The estimated volatility of a warrant.
_________________
come here broke....but learn so much from maxims sifu....now if possible i want to help others too
phoenix777- Consulting Member
- Posts: 11850 Credits: 12856 Reputation: 394
Join date: 2011-02-03
Location: Malaysia
Job/Hobbies: eating good food
Stock Exposure: 1 year
Stock Portfolio: empty handed
Re: For newbie: How to calculate hsi-h3 premium and other call warrant premium.
by phoenix777 on Sun 09 Oct 2011, 10:47
we usually play lots of warrants here so if you got any further ques pls ask us lor
or just borrow sifu's heart and mind
last month i borrow max's heart and mind on bimb and hsi h2....make 1k each
cud have easily make more in both bt nvm
or just borrow sifu's heart and mind
last month i borrow max's heart and mind on bimb and hsi h2....make 1k each
cud have easily make more in both bt nvm
_________________
come here broke....but learn so much from maxims sifu....now if possible i want to help others too
phoenix777- Consulting Member
- Posts: 11850 Credits: 12856 Reputation: 394
Join date: 2011-02-03
Location: Malaysia
Job/Hobbies: eating good food
Stock Exposure: 1 year
Stock Portfolio: empty handed
Re: For newbie: How to calculate hsi-h3 premium and other call warrant premium.
by inQic on Mon 10 Oct 2011, 00:59
thanks phoenix for open a topic for this
now i know how to count already really thanks to you guys
now my next question is ..
how they determine the warrant price for h3? how cimb set it when market open everytime? is there a formula to count for the price?
now i know how to count already really thanks to you guys
now my next question is ..
how they determine the warrant price for h3? how cimb set it when market open everytime? is there a formula to count for the price?
inQic- Member
- Posts: 578 Credits: 686 Reputation: 44
Join date: 2011-10-07
Re: For newbie: How to calculate hsi-h3 premium and other call warrant premium.
by phoenix777 on Mon 10 Oct 2011, 20:54
this one i am not sure.....other comrades can answer?
but i believe depends on many items. like last done price, mother share price, premium, expiry....
i will elaborate more later office carpark closing
but i believe depends on many items. like last done price, mother share price, premium, expiry....
i will elaborate more later office carpark closing
_________________
come here broke....but learn so much from maxims sifu....now if possible i want to help others too
phoenix777- Consulting Member
- Posts: 11850 Credits: 12856 Reputation: 394
Join date: 2011-02-03
Location: Malaysia
Job/Hobbies: eating good food
Stock Exposure: 1 year
Stock Portfolio: empty handed
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