Warrant: The condition of abandoning the right of line

⊙ Jianghai Securities Quxi Road Business Department Huangtendong the intrinsic value of the warrants is the key factor to determine whether the investors are right.　　We generally think that for the warrant, when the price of the positive shares is higher than the right price, its intrinsic value is positive, and it is called the price of the warrants; when the stock price is lower than or equal to the right price, the intrinsic value is zero, we are called the valence foreign warrants and the parity warrants respectively; for the put warrant, the situation is just the opposite. From the past, the right of the warrants, many investors will consciously choose the right to do.　　But in fact, many warrants have no intrinsic value, blind line of power will only lead to losses. For warrants with intrinsic value, investors should choose the line.　　And for the warrants that do not have intrinsic value, investors should not choose the right to do, if not right, investors lose the principal of the purchase of warrants, and the right to do so, the loss is the principal of the purchase of warrants plus the right price and the difference between the positive price. Take Sig CWB1 as an example, its row power price is 5.36 yuan, the row right proportion is 1, as of May 13 closes, the SIG medicine trade closes the price to 7.85 yuan. The positive price is higher than the right price, which indicates that SIG CWB1 has intrinsic value. If we assume that the sig CWB1 stock price remains unchanged, without considering other costs, the investor's right of return of each warrant is 7.85-5.36=2.49 yuan, which deduct the cost of the investor's purchase of warrants and the cost of the right of the bank, that is, the net profit of the investor; If the investor has no right to do so　　, the cost of an investor to buy a warrant is its net loss. Taking Wisco CWB1 as an example, the price of the line is 9.58 yuan, the proportion of the right is 1, and the closing of the shares of Wisco is 7.64 yuan in the last day of the right. The stock price is below the right price, which shows that Wisco CWB1 has no intrinsic value. If the investor has the right to do so, the cost of the investor to buy the warrant plus 9.58 minus the right price of 7.64 is the net loss.　　If the investor does not have the right, then the investor buys the warrant the cost namely is its net loss. For parity warrants, the situation is more special, because China warrants the right to sell the shares the next day, investors need to bear the risk of overnight. In addition, investors also need to bear the right after the increase in corporate equity, resulting in diluted earnings per share on the negative impact of shares. Therefore, investors should choose the right of the warrants with intrinsic value, and do not blindly do the right for the warrants without intrinsic value.