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Future

  1. http://www.investopedia.com/terms/f/futures.asp
  2. Knockout warrant
    1. [Very good]Knock out warrant example 
      https://www.scribd.com/doc/268776462/Knockout-Warrant
    2. KW’s are listed with a Knockout Level. If the price of the underlying index trades at that
      Knockout Level at any time on or before the expiry date of that KW, the warrant
      terminates immediately
    3. Gear/Leverage: Should the underlying index trade near the Knockout Level, the gearing offered by the warrant increases dramatically. 
      Gear = Gain of warrant / Gain of underlying
               = [(w2-w1)/w1]   /  [(u2-u1)/u1]
  3. Call & Put & Long & Short
    1. https://www.youtube.com/watch?v=EfmTWu2yn5Q
    2. Long: option
      Short: obligation
    3. Long Call: option to buy
      Long Put: option to sell
  4. Warrant = Call option + Issuer
  5. Volatility is a measure of the frequency and intensity of price change of the underlying asset (a stock or an index) on which a warrant is based. It is an annualised statistic, which represents a standard deviation price change, in percentage terms, at the end of a period.
    1. http://hk.warrants.com/home/basic/handbook05_e.html
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