Friday, April 8, 2011

DRB-Hicom Call Warrants: Simple overview

I just did a simple calculation on the call warrants for DRBHicom, for those who want to have a higher leverage on DRBHicom. From the table above using simple calculation for the target prices (I'm not incorporating any time value to the target prices, requires some time and data to calculate, dependent on when and what price DRB can reach as well), DRB-Hicom-CE appears to be the most attractive. Nonetheless, one should take note of the expiry date as the closer the warrant gets to the expiry date, the less worth it will be. Thus, the faster the mother share (i.e. DRB-Hicom) moves, the more accurate the table would be and DRBHicom-CE would probably move the fastest in percentage terms as compared to other call warrants.

I'm just beginning to explore these instruments. Welcome any thoughts and suggestions. Thanks :)


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