A warrant is an instrument issued by a credit establishment. In exchange for the payment of a premium when it is bought, this instrument entitles the holder to buy (in the case of a call) or sell (in the case of a put) an underlying component (share, index, bond, currency). The due date for a warrrant is normally longer than for an option.
Warrant premium
The price at which the warrant is negotiated on the market. It is calculated by adding up its temporal value and its intrinsic value.
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