A covered warrant, like a warrant or an option, gives the holder the right, but not the obligation, to purchase (a call warrant) or sell (a put warrant) a specified quantity of an underlying security at a specified ‘strike’ price per share i.e. the covered warrant exercise price, within a specified future date.
All covered warrants specify an end date and time for which the rights under the warrant can be taken up, after which the warrant will lapse. The lifespan to expiry is usually between three months and three years from issue. If held until expiry, the cash value of the warrant (if positive) will be credited to the investor.