A stock index option issued by either a corporate or a sovereign entity as part of a security offering, and guaranteed by an option clearing corporation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An option on a stock index or other security index. Those who buy and sell index warrants are often hedging against the overall movement of the index that the option tracks. For example, one may take a long position on an index fund, where the investor benefits if the index rises, and simultaneously purchase put index warrants locking in a certain price to sell the index fund if the long position does not rise.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved