Warrants: To Buy or Not To Buy
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 7th International Conference for Doctoral Students and Young Scientists. Selected Papers. |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | investing; current warrant markets; warrants |
| Description | This paper focuses on one type of financial derivatives - warrants. The author introduces differences in trading warrants in Asia in comparison with Europe and the Czech Republic. Factors that affect trading volumes of warrants and their value in real markets are critically examined. The aim of this paper is to show the inaccuracies in pricing warrants which are crucial for investors to understand. They must be aware that there is severe difference between theoretical knowledge and real situation before they invest in warrants. For this purpose several general problems are explained and described on cases from real world markets such as barriers to entry the market, transaction costs, existence of arbitrage, market liquidity, psychological aspects, imperfect information or credit ranking. |
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