The profitability of warrant issuers: An empirical investigation of single stock and index warrants

• Main Authors: WONGNAPAKARN, Ichaya, LEEMAKDEJ, Arnat, CHIRAPHOL, Chiyachantana N., PRASARNPHANICH, Pattarawan, MANITKAJORNKIT, Eakapat
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Derivative warrants; Profit of issuer; Risk factors of pricing; Delta-hedging; Corporate Finance; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6844; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7843/viewcontent/Profit_Derivative_Issuer_June27_2021_Final.pdf
• Institution: Singapore Management University

This study examines the derivative warrant's profit of issuers compensated with the risk from issuing call and put derivative warrants because they have commitments in risk management and managing risk by hedging the underlying exposure. The average profit of issuers is a cumulative profit from...