How will SBK dividend effect warrant price SBKSBI

[#1]

Anyone know how the last day of trade on June 1 for SBK dividend going to effect warrant price on SBKSBI as share trades ex-dividend after June 1st? First time I'm holding a warrant where the underlying is going to do this.

[cfm]

Safest is always to phone the issuer and ask. Here is the general rule.
The issuers does make provision for a dividend. You don't get it. They keep it, but the warrant price will not drop when the share price drop on LDT+1.

[Werner_1]

would the same apply for SSF's? i think it should, just making sure?

[SimonPB]

it will have no effect. But more imprtantly is that SBK is not paying a div on 01 Jun. Maybe you're looking at the SBK pref share?

[cfm]

Yes, for SSF it is the same. With SSF, there is another twist. When the dividend is announced, a payment is made into your account called "dividend protection" and the SSF price drops by that amount. On LDT+1, the SSF price does not drop with the underlying. Can be very confusing and play havoc with the stop loss system.

[SimonPB]

cfm, that payment (or deduction) is only made if the div assumption is wrong when the reality is announced.