What is a warrant ?
A warrant is an option in the form of a title. There are two basic types of warrants. Vouchers have a fixed duration (maturity) and, if not exercised, are worthless after their expiration date.
- A call warrant gives the holder the right to buy a given quantity of the underlying asset at a predetermined price (i.e. exercise either or strike price) on or before a given date (i.e. the date expiration).
- A put warrant gives the holder the right to sell a given quantity of the underlying asset at a predetermined price (i.e. the exercise or strike price) on or before a given date (i.e. expiration date).
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