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1. Risks of investing in CWs?

The volatility of the underlying asset price, limited life cycle, high leverage, 100% capital loss if holding to maturity and the underlying asset price is less than the exercise price.

2. CW price is affected by?

The underlying asset price: Same direction

The exercise price: Opposite direction

Time to maturity: Same direction

The volatility of the underlying asset price: Same direction

Interest rate: Same direction

3. Can I purchase CWs issued by BSCs without opening an account in BSC?

Yes. Investors can purchase CWs in trading account of other issuers.

4. Which CWs can I purchase?

The underlying assets must meet the following criteria:

  • In VN30 index
  • 6-month average market cap >= 5,000 billion VNDs
  • Free float >= 20%
  • 6-month average trading volume >= 25% free float or >= 50 billion VNDs/day
  • No loss-carryforward, this period profit > 0
  • Not in the waring, restricted, trading suspend, delisting list

5. Can I purchase put warrants or short sell CWs?

At the moment, there is no put warrant and no short selling the Vietnam market. BSC will inform investors when they are available.

6. Can I exercise CWs prior to maturity date?

No. The CWs in Vietnam are all European Call Warrants, can only be exercised at maturity.

7. Can I do intraday trading like futures contract?

No. Trading CWs is similar to trading normal stocks, which the transfer is made at the end of the T+2 day.

8. Do I have to open margin account and deposit the capital like futures contract?

No. Investors can trade CWs similar to normal stocks, i.e. in normal trading account.

9. Can I purchase CWs using margin?

As the CW product is already high leveraged, using margin is not allowed.

10. Can I purchase CWs exercised in 1 month?

No. The maturity day is 3-24 months from the issuing date.

11. If the foreign room of the underlying asset is reached, can foreign investors purchase CWs of this underlying asset?

Yes. Foreign investors is not restricted to purchase CWs as the payment is made by case, and foreign investors will not own any underlying stocks.

12. How to calculate the ceiling/floor price of CWs?

Ceiling price = CW reference price + (underlying asset ceiling price – underlying asset reference price) / conversion ratio.

Floor price = CW reference price – (underlying asset reference price – underlying asset floor price) / conversion ratio.

13. How to calculate tax of CWs?

The tax rate of the CW product is 0.1% of the trading volume.

Case 1: Investors sell CWs prior to maturity date, the tax amount is calculated based on the selling price. For example, investors sell 100 CWs at 2,000 VNDs, the tax amount is: 2,000 x 100 x 0.1% = 200 VNDs.

Case 2: Investors exercise CWs at maturity date, the tax amount is calculated based on the exercise price. For example, if the exercise price is 100,000 VNDs, the underlying asset price at maturity is 105,000 VNDs, the conversion ration is 1:1, the tax amount for 100 CWs is: 105,000 x 0.1% x 100 = 10,500 VNDs.

14. What is the last trading day of CWs?

The last trading day of CWs is 2 days before the maturity date of CWs.

15. I have a concern of manipulating the underlying asset price at maturity. How to reduce the risk?

The underlying asset price at maturity is calculated based on the 5-day average price before maturity, so it is difficult to manipulate. For example:

Date

Underlying Asset Price

Underlying Asset Price at maturity

07/11/2018

60,000

(60,000 + 55,800 + 57,000 + 54,200 + 56,000) / 5 = 56,600

08/11/2018

55,800

09/11/2018

57,000

12/11/2018

54,200

13/11/2018

56,000

14/11/2018 (Maturity)

53,700