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.
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.
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.