Deutsche Bank has listed the first Apple Call Warrant in Singapore.
This call warrant allows investors to take a long exposure to the price of Apply shares.
Counter name : Apple DB ECW110718
Strike price : US$400
Expiry : 18th July 2011
Entitlement Ratio : 50
At the time of posting, the price of Apply is about US$337 while the bid/ask price of the warrants is about $0.36.
This means an implied volatility of about 36%, premium of 22% and breakeven price of around US$414.
All the technical information and warrants calculator/simulator to work out the numbers can be found at the DB Apple Warrant page.
Actually, it’s a pretty good page as it allows you to calculate the geek for any warrants in Singapore.
I haven’t done any comparison yet but I suspect the warrants would be more expensive compared to buying the Apple options directly from the US market. For one thing, Apple shares are not traded during SGX trading hours, which will make it difficult for Deutsche to price the warrants correctly.
Did a quick check also and saw that interest has been quite muted with none of the warrants traded this morning.