Citigroup Inc. HSI Put Warrant

Citigroup Inc. HSI Put Warrant is a derivative instrument that grants holders the right, but not the obligation, to benefit from declines in the Hang Seng Index within a defined timeframe. Structured as a European-style warrant, it can only be exercised on its expiry date, offering cash settlement if the underlying index closes below the warrant’s strike price at maturity. This financial product is primarily used for hedging or speculative purposes, catering to investors who anticipate downward movement in the Hang Seng Index. Issued by Citigroup, the warrant is traded in board lots and typically features a fixed expiry date and strike level, such as 21,800 in this case. As part of Hong Kong’s vibrant structured products market, such put warrants allow for efficient risk management or leveraged access to index declines, contributing to the derivatives segment’s depth and liquidity. The warrant’s value and potential payoff are directly influenced by the underlying index’s performance relative to its strike level at expiration.