crystallizing of dividends for derivatives ..., page-9

Hi Gyro, it is hard to be definitive given you are not yet up to speed on derivatives.

OPM's are precise mathematics ... the purpose is specifically to provide a FAIR VALUE measurement that everyone can relate to with confidence anywhere in the world.

CBAWGN should be $0.35 now and isn't.

A combination of Issuer manipulation (see my recent posts re this...) of Imp/Vol and the dividend issue are important for holders of this Warrant ...

CBA has firmed from $27.00 to $28.00 in recent times and should move to $29.00 over the coming weeks ... following ex-div should retrace and settle IMHO around $28.00 or so.

SGA tanked the Imp/Vol again yesterday from 21.55% to 19.0% which is the third time in two weeks and shows just how aggressively they are manipulating the FAIR VALUE of this Warrant to kill off any possibility of a profit for Warrant Holders irrespective of the Underlying movement ...

SGA have stuffed up badly with this Warrant offering and gambled on CBA being $26.50 on 04/03/03.

CBAWGN closed at $0.265 yesterday and INTRINSIC VALUE alone is $0.25 ...

This Warrant should have a PREMIUM of at least $0.10 given it's nature and time to Expiry ... hence the SGA rip-off.

Cheers ...


This is only my view ... read the red stuff.