Call Warrants and Company Warrants =认购权证

1. What are the major differences between Call Warrants and Company Warrants?
   

   	Company Warrants	Call Warrants
   Issuer	Same listed company with that of the underlying shares	Authorised bank or universal broker
   Underlying asset	Shares issued by the listed company	Shares issued by another company, basket of shares or an index
   On exercise	New shares of the company are issued.  Results in dilution of shares	Involved existing, already-issued shares.  No dilution effect on shares
   Expiry date	Longer tenure; usually more than 4 years	Shorter tenure; usually less than 4 years
   Settlement method	Physical delivery of shares	Either physical delivery of shares or cash settlement

2. What are the principal terms in a Call Warrant? =认购权证
   
   • Issuer
   • Underlying Asset (e.g. share, a basket of shares, or an index)
   • Warrant Type (i.e. Call or Put)
   • Warrant Style (e.g. European or American)
   • Exercise Price (or Strike Price)
   • Expiry Date
   • Entitlement or Conversion Ratio (e.g. 1 warrant entitled to 1 share)
   • Settlement Method (i.e. either physical settled or cash settled)
   • Warrant Price (from which values for Premium, Gearing, Implied volatility, Delta, etc. are derived)
3. "Fully-collateralised" versus "non-collateralised" Call Warrants =抵押
   A Call Warrant issue is "fully-collateralised" if the issuer deposits the relevant amount of underlying securities with an independent trustee in order to secure the obligations of the issuer and adequately protect the interests of the warrant holders.
   A Call Warrant issue is "non-collateralised" if the issuer provides for its obligations in a form other than by way of charge over the underlying securities. The issuer usually adopts dynamic hedging strategies (对冲策略)to provide for its obligations under the warrants.