5. Time Value of warrants

  • Time value reflects the probability that the warrants become in-the-money (intrinsic value greater than zero) at the expiry date
  • For warrants with the same strike price, those with a longer remaining time to expiration have a higher time value

The above is a hypothetical case of call warrants for the purpose of illustration only. Past performance is not indicative of future results. The price of the structured products may fall in value as rapidly as it may rise and investors may sustain a total loss of their principal invested.


*Turnover of a warrant or CBBC has no direct relationship with the product's price. Investors should not use turnover as the only indicator when choosing a warrant or CBBC.