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Standard Bank launches gold and platinum warrants

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SimonPB
Valued Contributor
call an put each on gold and plat

golsba
golsbp
pltsba
pltsbp
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17 REPLIES 17
HateGauteng
Super Contributor
What underlying shares are they based on?
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SimonPB
Valued Contributor
they not .. based on rand/gold and rand/plat price ..
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Not applicable
Ja, but how does the spread get calculated?
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SimonPB
Valued Contributor
well you take the gold/US$ price .. multiply by the US$/Rand exchange rate and you get a rand/gold price .. you put that into black-scholes and you get a fair value .. then the issuer puts their bid/offer from that FV ..
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PaulC
Super Contributor
Im glad to see these coming out. Pity (Tho I understand why not) they are not based on the USD value of the underlying. Trading Gold and the Rand (2 vars that often move in tandem) means that an increasing USD gold price is offset against the rising rand. A friendly warning to people looking to trade these from someone who made a huge profit on GLD SSFs only to watch the profits get erodeded practically overnight by a change in the rand. Use it dont use it. Caution is the watchword here. - P
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Not applicable
Hi Simon, sorry if I sound pedantic, but there are a lot of variables here. Is it hte jun futers contract, the aug futures contract,or the spot price? And how many commissions variables are there, since who is the market maker for the underlying gold (if this question is relevant?) The difference might seem small, but I like to know exactly how far I am from a warrant jumping into the next bid/ask spread bracket, and it seems that it will be difficult to calculate on a gold or plat warrant?
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PaulC
Super Contributor
I tried to go trade em to see if there is any market depth yet and I get the generic eror page. Awesome :)
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SimonPB
Valued Contributor
yip, one can use a currency warrant or future to remove the currency risk ..
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SimonPB
Valued Contributor
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SimonPB
Valued Contributor
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PaulC
Super Contributor
was gold. And at pre-open. Ill try now
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john_1
Super Contributor
LOL.. when I first read this .. I thought it was some insentive scheme like credit cards..
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HHuysamen
Occasional Contributor
Simon, Any word when we can expect the Oil CRW's?
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SimonPB
Valued Contributor
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SimonPB
Valued Contributor
issuer hedgung into spot market on both rand and plat/gold .. latter commex on NY and rand on reuters D3000 ..
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HHuysamen
Occasional Contributor
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Not applicable
Are these going to be listed in the warrants matrix at some time?
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