InvestorsHub Logo
icon url

george8

12/08/05 10:51 AM

#10670 RE: pual #10667

Roger:

Your description are correct about "warrants".

In real application, warrants are mostly associated with corporate debts (such as bonds) or preferred stocks. Also, warrants are normally priced higher than prevailing share prices. And the expiration period is often many years out. It works more or less like out of money "call options (leaps)".

Therefore, many warrants are traded separately just like call options are.

George