Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

What happens on zero installment value

Reply
Stij
Contributor
Simon or anyone, when a share installment reaches zero value (ie. underlying drops lower than exercise price) and the underlying later recovers to above the exercise price again (before expiry), will the share installment start appreciating in value again? Those BILSTBs are only 3000c away from this which is not too far given the current situation...
0 Kudos
12 REPLIES 12
SimonPB
Valued Contributor
0 Kudos
Stij
Contributor
But if this doesn't happen before roll-over/expiry, you're stuffed? Hypothetically speaking, of course ;-)
0 Kudos
SimonPB
Valued Contributor
correct, and if the share is below strike the instalment behaves like a risky warrant.
0 Kudos
Preston
Super Contributor
Very unlike BILSTB will go to Zero. With the FED decision coming up and BIL proposed buyout of Rio Tinto.
0 Kudos
Stij
Contributor
well I bought at 7377, so it had better start recovering soon..
0 Kudos
Preston
Super Contributor
R77,37 , At what price was it trading on the open market?
0 Kudos
Stij
Contributor
BIL was @ 21540 - Nov 21 2007.
0 Kudos
Preston
Super Contributor
On a serious note, you have plenty of opportunity to sell off. Why did not exercise that choice?
0 Kudos
Stij
Contributor
taking long-term view - planning to roll-over, etc.
0 Kudos
Preston
Super Contributor
Have a look at bil share price? You still have hope!
0 Kudos
Stij
Contributor
The BIL installment is a relatively small portion of my overall investment portfolio so since I didn't get out early, I'm willing to take the risk that it expires worthless rather than sell at these levels - your thoughts?
0 Kudos
Preston
Super Contributor
I have also taken a few BIL installment. I guess i will also do the same. There is always hope Dude. Bil is an quality share and a quality company.
0 Kudos