China Southern Airlines late fall below the exercise price of put warrants

 Late decline: China Southern Airlines fell below the exercise price of put warrants
2008-6-18 9:14:00 Code: 580989 of: Jane Chun Tung Source: Source: 21st Century Economic
if 17 China Southern Airlines (600029 )'s closing price prior to the 12 there, then the history of Chinese warrants may have to be rewritten.
17 days, China Southern Airlines closing price 7.39 yuan, China Southern Airlines put option which is listed on the past year, is the first stock lower than the warrant exercise price, the South put warrant is exercisable at a price of 7.43 yuan.
late for a In Southern Airlines China Southern Airlines put warrants on the exercise have stressed the prompt notice before (without expiration date) daily closing price ten trading days of the arithmetic average , then the Southern put warrant would be impossible to return before June 20 in price.
a more accurate calculation is that unless the put option is the Southern Right line trading day before the 9 mm is June 6 Southern Airlines began a continuous limit, otherwise the price has not returned to within.
6 6, China Southern Airlines closed at 10.35 yuan, down 2.63%, now, Southern warrants already one for the paper.
put most of the Southern But after a 2:30 start straight down, closing plunged 27.48%, thus beginning its May, plummeted 40.12%; June 13, plummeted 97.09%, 5 trading days, the price dropped to 0.003 yuan from 0.615 yuan.
But major stock forum, many investors for the announcement at the prompt China Southern Airlines due date mentioned in > Shanghai Stock Exchange July 18, 2007 promulgated the exercise price and settlement price of underlying securities at exercise and the cost of the post, receive cash, number , investors want to exercise, you must buy the corresponding stock price will therefore be raised, put warrants more easily l zero r. br> put warrants were demonized?
hope that investors do not blind speculation, the warrant price at maturity the possibility of extremely large return 0, the investor must not blindly follow ; If not issued policies to rescue the market, then China Southern Airlines already has a price of warrants warrants the inside. the right investment choices.
fact, the April 21, China Southern Airlines shares fell to 9.24 yuan, 19% relative to exercise the highest bid, and then two months from the date of Exercise Time.
since A put option shares in the market so far have proved that the put warrants will eventually be Warrant investors go hand in hand.
Southern warrants until the end, though proved just a gamble, but the June 17 South Airlines stock price, investors put option trading in Southern and Southern no lack of reasonable ingredients mm Put warrants from the price is only one step in the distance.
the market in great demand, but supply is insufficient. Warrants were issued at the time the bull market, have been put warrant is a hedge of the species, the bull market in low demand for hedging, but if from now on put warrants issued, then the function will be hedging large, therefore, should not be put warrants into the history of a species. the case of put warrants, investors can sell the stock, but if put warrants, investors can buy put warrants, which can actually reduce market volatility.