In the case of Mini-Future Certificates and Knock-Out Warrants, the purchase price is always very much based on the difference between the financing level/strike and the current price of the underlying. This is not so simple with warrants. Here, the purchase price is determined from the addition of two value components that can be analyzed separately: the "intrinsic valueʺ and the "time valueʺ.

The intrinsic value corresponds to the difference between the strike/exercise price and the current price of the underlying.

Warrants always have a term. For investors, there is therefore always the chance that the price of the underlying will be above (Call Warrant) or below (Put Warrant) the strike by the end of the term. This chance can be assigned a probability of occurrence and a value using financial mathematical methods. It should come as no surprise that this opportunity is not offered free of charge on the capital market, but that a price must be paid for it. In options language, this opportunity, to which a probability of occurrence can be assigned, is called time value. For this reason, a Call Warrant whose strike price is above, or a Put Warrant whose strike price is below, the current price of the underlying asset is not worthless during its term, even if exercising it would make no economic sense.