Date: August 14, 2017
Warrants listed on SGX are primarily European-style and may only be exercised on the expiry date. At expiry, the settlement of the warrants is usually made in cash rather than a purchase or sale of the underlying asset.
|Types||Call Warrants||Put Warrants|
|Market View||A Bullish View of the underlying asset||A Bearish View of the underlying asset|
|Rights of Warrant Holders||Holders have the right, but not the obligation, to buy the underlying assets from the issuer at a predetermined exercise or strike price on the expiry date||Holders have the right, but not the obligation, to sell the underlying assets to the issuer at a predetermined exercise or strike price on the expiry date|
|Lifespan||Warrants have an average lifespan of 3 to 9 months. Warrants are also offered with longer tenure between 1 to 3 years.|
|Settlement if warrants expire in-the-money||Cash settled if the settlement price is above the exercise price||Cash settled if the settlement price is below the exercise price|
|Potential Loss||Total investment outlay|