A warrant is an option in the form of a security. Stock exchange listed warrants offer the opportunity of exposure to individual shares and to the OBX Index, and are traded in just the same way as normal shares. Both Handelsbanken and DNB have listed warrants on Oslo Børs.
DNB is now expanding its range of warrants listed on Oslo Børs with warrants for some new underlying shares. In total, DNB and Handelsbanken currently offer warrants in 11 shares on Oslo Børs. The new warrants listed by DNB will increase the number of underlying shares to 25. In addition, DNB is offering new warrants with the OBX Index as the underlying index.
Investing in derivatives, such as options and warrants, offers opportunities to make money if the market falls, rises or remains unchanged. In addition, derivatives can provide high returns for a small investment because they magnify the effect of movements in the underlying share or index. A call warrant will produce a high return if the underlying share price or the OBX Index rises. A put warrant works in the same way if the price of the underlying contract falls.
DNB and Handelsbanken operate as market makers in the warrants they list on the stock exchange, which means that they quote binding bid and offer prices for these warrants.
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