warrants

What are warrants and how are they different from options?

Many investors use derivatives to hedge their portfolio or speculate on the market. One derivative that an investor can use is warrants. In this article we discuss what this is, how this product differs from option,s and they reasons why warrants may be used. Definition A warrant is another form of derivative which is similar to an option but has some different characteristics. Similarly, to an option it gives the buyer the right not the obligation to buy or sell …

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