Equity Blue

One of the basic structured leveraged instruments, which are exchange traded, is a so-called warrant . Warrant is a type of security, which is in fact a wrapped option. For the purpose of reviewing the warrant and its functioning, it should fully help us to look at the fundaments of options and with them associated terminology and functionalities. A warrant, i.e. an option, provides the right to purchase or to sell a given amount of a defined underlying asset for a given price in a given period of time. The underlying asset can be bought or sold either any time during the life of such warrant (option), in such case we talk about a so-called American style , or at the maturity of the warrant (option), in such case we talk about the so-called European style . A warrant (option) with the right to buy an underlying asset is being bought with the expectation of a future growth of the price of the underlying asset. This type of warrant (option) is called “ Call ”. A warrant with the