Warrants may be issued over a range of underlying assets, including shares, baskets of shares or an index. A range of factors may affect the prices of warrants, including the current prices of underlying shares, implied volatility or time value, etc.

Two main types of warrants:
  • Subscription warrants are issued by listed companies and give holders the right to buy the underlying shares of the companies.
  • Derivative warrants are issued by financial institutions. Unlike subscription warrants which must be call warrants, derivative warrants can be call or put warrants.