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Subsequently, following the decline in the price of Montedison shares, which also fell below the value of 1,000 lire, the price of the warrant, which discounts the distant expiry date in its price, but as it approached, it adjusted more and more to the value of the related share. It first fell as low as L. 100, and then touched the value of a few Lire in 1996, until it fell to zero close to expiry.
For example, a starting value for 100,000 warrants of L. 30,000,000 (Thirty Million Lire) was reduced to zero in 1996.
The financial danger of warrants, an instrument often not correctly valued, marked the historical-financial period of that era.
Exchange rate Lira / € = L. 1936.27 for 1 €
