Vanilla Warrant

[Hedgehog]

Hi Simon Once a call warrant's price falls to R0 and the underlying price picks up again, has the warrant expired or does the warrant price pick up again?

[SimonPB]

it can pick up again. But if it has fallen enough then it may remain at zero.

[Hedgehog]

Understood thanks

[gida]

the wave warrant does not recover once the strike price is reached?? whats the upside to this then?

[SimonPB]

correct, the wave expires immediatly and worthless whent he barrier is hit. Upside is linear time decay and often tiomes better gearing.