Derivatives

Forward Reversing Option

January 4, 2022
Derivatives

Forward Cover

January 4, 2022

Share

A warrant that never expires and therefore remains valid unless it is actually exercised. This warrant gives the holder the right to buy shares of common stock at a preset price without specifying an expiration date. The underlying right will be exercised only if the stock’s dividend rate is large enough to convince the warrantholder of buying the share of stock, having whereby a claim on the forward dividend stream.

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