Warrant and Certificates and their specific financial risk profiles

Contents:

Introduction

PART 1: Warrant and Certificates

A. What is a Warrant? - Definition
- Maturity and life span

B. Types of certificates
- Certificates of indexation
- Certificates turbo
- Certificates of return

C. Risk of warrants and certificates

PART 2: specific financial risk profiles of warrant

A. Valuation of Warrant

B. Risk profiles of “Call warrant”?

C. Risk profiles of “Put Warrant”?

Conclusion
Bibliography

Implementation of derivatives

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Warrant and Certificates and their specific financial risk profiles

Introduction:
Appeared in the mid-1980s, the warrants knew a real development at the end of 1990s.. This rapid development is linked of course to the development of finance by Internet, which made trading cheaper and faster. Despite the bursting of the Internet bubble, the warrants have maintained exchange levels equivalent to those of 2000. With nearly 6 billion euro of trade a year, the warrants found a full place at Bourse. Today, most of financial newspapers and stock-exchange sites, online brokers offer a range of advice and recommendations on these products. Warrants represent for investors many advantages: they are quoted on the Stock Exchange like any share, include many "underlying" (stocks, indices, currencies, commodities) and are subject to an animation market from the financial institution that issues them. Not less than 8,000 warrants that are esteemed in 2010 on Euronext Paris, on the Paris Stock Exchange. Euronext is an association, established in September 2000 by the merger of companies managing the markets stock exchange of Paris, Brussels and Amsterdam. Essential to reduce trading costs in an environment of European and global competition becoming more intense.

Implementation of derivatives

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Warrant and Certificates and their specific financial risk profiles

PART 1: