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What if the underlying stock eventually declared a dividend lower than expected? How about if the declared dividend is larger than expected?

If the dividend declared is lower than expected, the price of the call warrant would be expected to move up, assuming other factors remain unchanged.

On the other hand, if the underlying stock declared a larger dividend than expected, the price of the call warrant would be expected to drop, assuming other factors remain unchanged. Accordingly, investors who bought the warrant may lose.

You may read further "How does the distribution of dividends of an underlying stock affect the price of a warrant or CBBC?" .