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Most Asked Questions

A call warrant had 70% of its volume outstanding in the market. Why did the price of the warrant drop while the price of the underlying remained unchanged?

Assuming all other factors remain constant, it is likely that the warrant price is affected by market force. The higher the outstanding amount, the greater the potential that the warrant price is affected by market supply and demand, and as a result of which the warrant price may drop due to the high selling pressure while the price of the underlying remained unchanged.