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Most Asked Questions

What is the premium?

The premium reflects the degree by which the price of the underlying asset needs to move before reaching the break-even price of a warrant or a CBBC at expiry. For example, if the premium of a call warrant or a bull CBBC is 10%, the underlying price should rise by 10% at expiry, in order to reach the break-even price.

You can calculate the premium based on the formula below (based on the payout formula at expiry):

These formulae can therefore be used as a reference to calculate the percentage by which the price of the underlying asset needs to move before reaching the break-even price of a warrant or a CBBC at expiry.