There's a comparison of covered warrants with traded options in this week's Investors Chronicle (Masterclass supplement). They've taken the strike prices of a batch of FTSE 100 warrants and ranked them alongside some Liffe options. The upshot is that there are FTSE call warrants with strike prices 75 points higher than Liffe options that should be cheaper but are actually more expensive.
But the IC doesn't give a worked example of how much it would cost to get in and out. I know that option trading commissions can be higher. Does anyone know at what point the higher dealing costs of options cancel out the lower costs implied in the price?
But the IC doesn't give a worked example of how much it would cost to get in and out. I know that option trading commissions can be higher. Does anyone know at what point the higher dealing costs of options cancel out the lower costs implied in the price?
