CPWP Module 1 Paper 1
(Set A)

HKD 188

60 Questions

3 Apr 2025

CPWP Module 1 Paper 1 Exam Question

Mr Lau is looking at ABC stock trading at HKD8 and their warrants-strike price of HKD10. The warrant is currently priced at HKD1. He buys 2,000 warrants. If 1 warrant can be exercised for 2 common shares, and the stock rises to HKD12 just before the warrants expire, how much profit could he make?

a) HKD1,000

b) HKD2,000

c) HKD4,000

d) No profit