
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