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After the expiration date, the warrant has expired, and the holder can no longer use it. Under an American-style stock warrant, the holder can exercise his right to buy or sell the shares at any time before the warrant expires.
In the case of a warrant that is not exercised at expiration, the warrant will become worthless. In the case of an in the money option, it will be automatically exercised at expiration. At the money or near the money options and out of the money options will expire worthless.
With warrants, they offer a major advantage - long-term investment. It's an advantage because with time, the chances of the share price surpassing the strike price (predetermined price) are higher. How it works is, you purchase the asset at a low strike price and sell it when the market price is higher.
The expiration date is the date on which the stock warrant expires. Once a stock warrant expires, it is no longer valid, and the holder loses the right to buy or sell the underlying stock at the exercise price.
Warrant features Underlying instrument. Call or put. Exercise price. Exercise style. Expiry date. Settlement style. Conversion ratio. Index multiplier.
What happens at expiry? Call Warrants: if the settlement price of the underlying is above the strike price at expiry, the call warrant is deemed to be ?in-the-money? and the holder will receive a cash payment. Otherwise the warrant will expire worthless.
Time to expiry ? The longer the time to expiry, the pricier the call or warrant.