instalment buyers be careful, page-11

Was I too simplistic? … Instalment warrants are a form of margin leading, as there is an interest component.

The issuer buys the share gears in an interest component and sells the controlling instrument (a warrant)
The longer the time to expiry the greater the interest component and therefore a greater premium to the underlying share price in theory.

Actually I’m not sure the issuer has to buy the share. They may only act as an intermediary between the shareholder and the warrant holder.

Anyway that’s my current understanding in any case all I care about is that I buy a reasonably priced warrants in companies whose share price will go up faster than the premium evaporates … But then don’t we all !