Basket CWs- ZA-OSKSB, ZB-CIMB & ZC-CIMB

Today, we have the listing of two new basket CWs, i.e. ZB-CIMB & ZC-CIMB. This is in addition to the present basket CW, ZA-OSKSB. The main difference between the existing ZA-OSKSB and the newer basket CWs are:

1. ZA-OSKSB is a zero-strike CW, where the exercise price is a nominal sum of RM0.01;
2. ZA-OSKSB is a Bermudian style CW, where it is exercisable quarterly as compared to the newer basket CWs which are European style CWs (where they are exercisable only on maturity); and
3. ZA-OSKSB tries to track the top 20 stocks listed on the KLSE while the newer basket CWs allows sectoral exposure to the stock exchange companies in Malaysia, Singapore & Hong Kong (in the case of ZB-CIMB) or exposure to Oil & Gas stocks in Malaysia & China (in the case of ZC-CIMB).
   

The valuation table below gives the premium of the three basket CWs. The underlying value of ZB-CIMB & ZC-CIMB are shown in the two tables below the main table, while the value of the underlying stocks for ZA-OSKSB is extracted from OSK188.com (go here). The premium of ZB-CIMB & ZC-CIMB is computed using their IPO prices. We can see that the premium assigned to ZB-CIMB & ZC-CIMB is quite high.