ETO & Warrant hedging

  1. 21,490 Posts.
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    I had an interesting response from Parity regarding why some warrant pricing didn't appear in line with fair price.
    One possible reason offered was that the issuer hedges warrants against eto's with warrant pricing hence making the warrant more attactive in price than what wuld otherwise be fair value. One such warrant being NCPWGD a couple of days ago.
    I have not heard of this one before.
    Any thoughts?

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