Factors that affect the price of Inline Warrants (1) – Underlying Price

Unlike standard warrants, the underlying price movement may have a positive or a negative effect on the price of Inline Warrants, depending on where the underlying price is compared to the Upper and Lower Strikes. Assuming other factors remain unchanged, the closer the price of the underlying asset towards the midpoint of the Upper Strike price and Lower Strike price, the higher the price of an Inline Warrant; on the other hand, the price of the Inline Warrants is lower as the underlying asset price moves away from the midpoint of the Upper Strike price and the Lower Strike price.