Blockbuster Warrants

Blockbuster Warrants are Hollywood Derivatives which allow traders the opportunity to invest in the long-term financial success of the biggest studio films for the 2008 summer season. Blockbuster Warrants are similar to Call Options. The strike price for the First Round is the estimated total domestic box-office take through Labor Day Weekend 2008.

If this particular film makes the strike price by September 1, 2008, the warrant will cash out at the difference between the actual box office and the strike price. If the film does not hit the strike price, then the warrant will cash out at zero.

Example: The Iron Man Blockbuster Warrant has a H$200 strike price. If Iron Man makes $220 million domestically, then the Iron Man Blockbuster Warrant will cash out at H$20 per share. (Box Office - Strike Price [$220-$200]). If Iron Man makes less than $200 million, then the warrant will cash out at H$0.

Round One of the Blockbuster Warrants will cash out on September 2, 2008.