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3 Cards in this Set
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- Back
- 3rd side (hint)
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Warrant |
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise [clarification needed] price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities |
Security |
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Commodity Warrant |
A warrant is similar to an option, insofar that it is a derivative – in other words, its value is "derived" from an underlying financial instrument, security, or asset – and gives its holder the right to buy or sell that security at a fixed price, on, or before, a specified date in the future. |
Derivative |
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Position On commodity pricing |
Warrants are usually of one or two types, investment, or trading. The simplest type of warrant grants the right to buy, or sell, an individual stock, or index, but warrants on commodities, such as crude oil, and currencies, allowing investors to take a position on exchange rates, for example, are other possibilities. Sometimes more than one type of warrant can be used to achieve the same investment objective.
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Gain On price change with Warrant leverage |
