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Turbo warrant


The turbo warrant is a stock option with two new features. It has a “low vega”, the option price is much less affected by the “implied volatility” of the stock market. The strike price of the option is also a “barrier”, if the stock hits that price the option expires worthless.


Market

The first turbo warrants appeared in late 2001 . In Germany buying and selling turbo warrants constitute 50% of all derivatives trading.

Nordic Growth Market

At the end of February 2005 Societe Generale listed the first 40 turbo warrants on the Nordic Growth Market Nordic Derivatives Exchange. During February 2005 the turbo warrant trading revenue was 31 million kronor, 50% (31/55) of total NGM trading revenue of 55 million kronor.

Exchanges

Securities exchanges that trade this product.

* Nordic Growth Market Nordic Derivatives Exchange

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