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How to calculate ( IGB-CD ) call warrant ?

posted 20 Feb 2011, 18:12 by Zam Mlk
Issuer : CIMB
Listing date : 19 / 01 / 2011
Maturity date : 20 / 01 / 2012

(A)exercise / strike / conversion price : RM2.10
(B) exercise / conversion ratio,  3 to 1

(C) IGB-CD market price : RM0.165

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so, (B) X (C) 

3 X 0.165 = RM0.495 (D)

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Then, (A) + (D)
2.10 + 0.495 = RM2.595 (E)


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how to calculate premium or discount?

market price of IGB, RM2.21 (F)

so, (E) - (F)
2.595 - 2.21 = RM0.385 (G)

in percentage, (G) / (F)
0.385/2.21 = 0.174

0.174 X 100 = 17.4%  (premium)
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