Can someone with knowledge of Warrants explain, page-2

  1. 5,816 Posts.
    Hmmm.... simple definition of I/Volatility as applies to derivatives (ETO's/ Equity Warrants) and expressed as a percentage ... is the likelihood (%) that the current Underlying Price (Stock Price) will reach the Strike Price by the Expiry Date ...

    Watch out for Warrants as the I/Volatility quoted (e.g. Parity) is seldom the TRUE figure according to BSOPM modeling ... rather a number created by MM's to support their preferred Bid/Ask position ...


    This is only my view ... read the red stuff.



 
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