Common use of Some Additional Risks Involved in Trading Derivative Warrants Clause in Contracts

Some Additional Risks Involved in Trading Derivative Warrants. Time decay risk All things being equal, the value of a derivative warrant will decay over time as it approaches its expiry date. Derivative warrants should therefore not be viewed as long term investments.

Some Additional Risks Involved in Trading Derivative Warrants. (a) Time decay risk All things being equal, the value of a derivative warrant will decay over time as it approaches its expiry date. Derivative warrants should therefore not be viewed as long term investments.

Some Additional Risks Involved in Trading Derivative Warrants. 1. Time decay risk All things being equal, the Derivative warrant has time value of a derivative warrant which will decay be reduced over time as it approaches its the expiry datedate of the derivative warrant. Derivative warrants As such, derivative warrant should therefore not be viewed treated as a long term investmentsinvestment.