Covered Warrants

Covered WarrantsCovered Warrants (CW) are financial instruments that give the holder the right to buy (Call CW) or sell (Put CW) an underlying asset at a fixed price to (or within) a future date . While the scope of the Warrants is limited to equities, CW may also be issued on bonds, indices (equity or debt), baskets of securities, currencies, commodities and interest rates. are financial instruments that give the right, but not the obligation, to buy or sell a specific underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. asset at a predetermined price either a) within a specified period, in the case of American Style Covered WarrantsCovered Warrants (CW) are financial instruments that give the holder the right to buy (Call CW) or sell (Put CW) an underlying asset at a fixed price to (or within) a future date . While the scope of the Warrants is limited to equities, CW may also be issued on bonds, indices (equity or debt), baskets of securities, currencies, commodities and interest rates., or b) at a predefined Expiry DateThe date the effects associated with a financial instrument cease and as a result are no longer valid., in the case of European style Covered WarrantA Warrant is a financial instrument that gives its holder the right to buy (a Call Warrant) or sell (a Put Warrant) an Underlying asset at or by a certain date at a fixed price. If the right is exercisable within a given period of time it is known as an American-style Warrant; if the right can be exercised at a specific date it is known as a European –style Warrant.. They are derivative financial instruments as their value is derived from the movements in the price of the underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. financial asset. The underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. asset of a Covered WarrantA Warrant is a financial instrument that gives its holder the right to buy (a Call Warrant) or sell (a Put Warrant) an Underlying asset at or by a certain date at a fixed price. If the right is exercisable within a given period of time it is known as an American-style Warrant; if the right can be exercised at a specific date it is known as a European –style Warrant. can be any asset traded on a regulated stock exchangeThe Stock Exchange is a regulated market where financial instruments are listed and traded, represented by debt securities (bonds), capital shares (stocks) and derivative financial instruments. In Italy the Stock Exchange is electronic and it has been managed by the Italian Stock Exchange (Borsa Italiana SpA) since 1998.: generally sharesTitle document showing the minimum stake of a shareholder in the share capital of a company that entitles the holder or the Shareholder, to receive a part of the profits eventually distributed by the company and which can confer the right to vote at the shareholders meetings. There are different types of shareholdings depending on the company incorporation and these can be: ordinary, preference or savings., indices, currencies, bondsThe Bonds are debt instruments representing a portion of debt issued by a company or by a public body to finance part of its financial requirements. and commodities. The option to buy or sell a specific underlyingThe Underlying asset is the activity such as a share, stock index currency, commodity or any other real( e.g. raw materials) or financial asset( an exchange rate or interest rate) upon which the value and price of the Certificate is dependent. asset at a predetermined price is the amount of money paid by the buyer to the seller. Such amount of money is defined as a premiumIn option contracts, the premium is the amount of money that a buyer pays the seller to have the right to buy or sell an Underlying asset at or by a future date at a predetermined price. Relating to Bonus Certificates the premium is represented by the Bonus and is paid to the investor if the value of the Underlying, (if it is a European-style certificate or continuous basis if an American-style certificate), at maturity does not reach the Barrier Level..