Time Decay on Warrants

[#1]

Can some explain how this works? I know that it increases as the warrant approaches expiry date (at an alarming rate...), but does it also change relative to the difference between the strike price and the spot price?

[Wumpus]

Click "Help and education" -> "Warrants course".

[#3]

Thanks,sort of helps. If the warrant is way OTM then it has a higher time decay than if it was ATM or ITM for the same time period...I think!

[nonnb]

The maths be here : http://en.wikipedia.org/wiki/Black-Scholes Loosely translated, it means that the issuer walks away with your money on the expiry date unless you be really lucky :)