Derivatives
Warrant
Definition
What is Warrant?
A long-dated right, often issued by a company, to buy its shares at a specified price.
Example in practice
How This Looks in Practice
The warrant allows purchase of one share at ₦25 before expiration.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.