# Education

### Break even point

For Call: Strike Price + (Call Price x Entitlement Ratio)

For Put: Strike Price - (Put Price x Entitlement Ratio)

For Bull: Strike Price + (Bull Price x Entitlement Ratio)

For Bear: Strike Price - (Bear Price x Entitlement Ratio)

### Call Level

Call price or level is the price at which a mandatory call event will occur if the underlying price reaches this level.

### Days to Maturity

Days to Maturity is calendar days to maturity date.

### Delta

Delta is the change in the warrant/CBBC price due to a change in the underlying price.

### Effective Gearing(x)

Effective Gearing = Gearing xDelta

### Entitlement Ratio

Entitlement ratio is the number of warrants/CBBCs required to convert to a single unit of the underlying.

### Funding Cost

The funding cost is the cost to fund the position in the underlying.

### Gearing(x)

Gearing = Share Price / (Warrant Price x Entitlement Ratio)

### Implied Volatility

Implied volatility refers to the estimate of future price volatility of the underlying asset.

### Lot Size

Lot Size is the quantity increment that the warrant/CBBC can be traded in.

### Maturity Date

Maturity Date is when the warrant/CBBC expires.

### Moneyness

Moneyness is the strike price relative to the underlying price.

### Outstanding QTY

The outstanding quantity is the public holdings of warrants.

### Premium

Premium is the percentage the underlying price needs to move to break even on the warrant/CBBC price at expiry day.

### Premium(%)

Premium(%) for a Call Warrant = {[Strike + (Warrant PricexEntitlement Ratio)] - Underlying Price}/Underlying Price x100%

for a Put Warrant = {Underlying Price-[(Strike - (Warrant Price x Entitlement Ratio)]}/Underlying Price x100%

Premium(%) for a Bull Contract = {[Strike + (CBBC Price x Entitlement Ratio)] - Underlying Price} /Underlying Price x 100%

for a Bear Contract = {Underlying Price -[(Strike - (CBBC Price x Entitlement Ratio)]} /Underlying Price x 100%

### Spot difference

Spot difference is the difference between the call level and underlying price.

### Strike Price

Strike price is a price at which a derivative contract can be bought or sold when it is exercised.

### Theta

Theta is the daily decay of warrant value.

### Tick Sensitivity

Tick Sensitivity = The change in warrant price in ticks for 1 tick change in underlying price

### Type

Category R CBBCs may have residual value. The residual value is what the CBBC is worth after the mandatory call event.

### Vega

Vega is the measurement of the warrant’s price sensitivity to changes in the volatility of the underlying asset.