Options and Warrants are category names for two financial product groups traded on ASX. In both cases the value of the product is linked to the value of another financial product. For example, the price of a Telstra warrant is linked to the trading price of a Telstra share. Some warrants are similar to the equivalent option. For example, Telstra call warrants may be economically similar to Telstra call options, with the key differences being outlined in the table below. The major differences between options and warrants arise because of the very broad range of warrant products available compared to options. For example, a Telstra call option is different to a 10-year Telstra instalment or a Telstra endowment warrant. When deciding whether an option or warrant suits your investment needs you should consider your financial objectives as well as what level of risk you want to assume. You should speak to an ASX Accredited Derivatives Adviser before investing in either product. Differentiator
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