Hello Traders
I have a newbie question: How can the option value differ from the value of the underlying in the following Option (Warrant).
Here is the Chart:
http://img178.imageshack.us/img178/5439/imagephpp.png
This is the termsheet: http://www.datafilehost.com/download-2608dfec.html
Excerpt from the termsheet:
"Ratio: 1
Certificate Right: Each Certificate entitles the holder in accordance with the respective Terms and Conditions of the Certificates, to receive an amount in USD converted into CHF (using the USD/CHF rate based on the official mid-closing spot rates of USD/CHF on Reuters Page USDCHFFIXM=WM) equal to the Market Value on the Valuation Date multiplied by the Ratio and further multiplied by the Hedging Fee Factor.
Max Hedging Fee: 0% p.a."
Who can explain this to me ???
Thank you
Optimo
I have a newbie question: How can the option value differ from the value of the underlying in the following Option (Warrant).
Here is the Chart:
http://img178.imageshack.us/img178/5439/imagephpp.png
This is the termsheet: http://www.datafilehost.com/download-2608dfec.html
Excerpt from the termsheet:
"Ratio: 1
Certificate Right: Each Certificate entitles the holder in accordance with the respective Terms and Conditions of the Certificates, to receive an amount in USD converted into CHF (using the USD/CHF rate based on the official mid-closing spot rates of USD/CHF on Reuters Page USDCHFFIXM=WM) equal to the Market Value on the Valuation Date multiplied by the Ratio and further multiplied by the Hedging Fee Factor.
Max Hedging Fee: 0% p.a."
Who can explain this to me ???
Thank you
Optimo