Since the company is the writer of the call option on stocks, the company gets paid (the warrant buyer will pay the price of warrant = w as premium) and hence I expected the market cap to increase by Mw (M = number of warrants). But instead, the chapter says the market cap is reduced by Mw. Is...
Statement as per the book official GARP book (chapter 11, seasonal differencing):
How is this equation MA(1)? Isnt this an MA(4) with theta=-1?
And how is this covariance stationary? The characteristic equation is 1+z^4 with complex root of abs value of unity.
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