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Range Warrant
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(1) A multitranche structure which allocates a fixed return on the premium pool collected to range tranches on the basis of the price of the underlying at expiration. One tranche might get the return if the underlying price falls between 0 and 100. The second might get the return if the underlying falls between 101 and 200, and so on. Unsuccessful tranches get a rebate of their premium with a zero return. Compare with Range Accumulation Option or Warrant. (2) See Trading Range Warrant (diagram).
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