Be the first to like this.

2 comment(s). Last comment by muchamp 2022-03-18 11:27

Thkent91

195 posts

Posted by Thkent91 > 2022-01-03 20:03 | Report Abuse

Not true on this part: Other corporate actions and their impact

In determining the issue price of a warrant, an issuer normally takes into account the expected dividend from the underlying. If the dividend payout is in line with what was expected, the warrant price will be unaffected. However, if the dividend payout is more than expected, the underlying price will decline more than expected on ex-dividend date, and the warrant price may immediately follow suit to decline (for call warrant) or rise (for put warrant).

https://www.bursamalaysia.com/reference/faqs/securities/faqs_on_structured_warrants

muchamp

2 posts

Posted by muchamp > 2022-03-18 11:27 | Report Abuse

meaning if dividend is more than expected, warrant holder will suffer loss after ex-date as a result?

Post a Comment
Market Buzz