Extension amplitude and wo-round price

FA Hing Lee Kam Some investors ask: why is the extension of amplitude and the price of the nest wheel in the same direction? The author tries to cite a simple example to illustrate the assumption that there are two shares of HK $50 in the market, in which the share price fluctuates substantially between HK $20 and HK $80 over the past year, while the share B price is only a narrow range between HK $40 and HK $60.　　So which shares have a higher chance of rising to HK $80 a year? It is clear that many investors will see a higher chance of equity a. But investors should be aware that what has happened in the past does not mean that the future will repeat itself, as the above example describes the historical volatility of shares. The extension amplitude is the expectation of the market for the volatility of the positive stock over a period of time, as the final value of the nest wheel depends on the distance of the stock price exceeding the exercise price at maturity (in terms of the subscription certificate, is higher than the exercise price and the warrant is below the exercise price, the greater the volatility of the positive stock, the higher the chance of the price exceeding the exercise price, Therefore, the value of the nest wheel should be higher, and if the volatility of the stock is expected to shrink, the chance of its price exceeding the exercise price will be lower, the value of the nest wheel is naturally low.