Huge warrant sale has muted impact on vol

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The US Treasury auctioned off $1.542 billion of warrants referencing Bank of America’s common stock on March 3. While it is the largest sale of long-dated warrants held under the Troubled Asset Relief Program (Tarp) to date, the impact on options markets was limited, dealers say.

The auction involved an offering of 150.37 million A warrants and 121.79 million B warrants. The A warrants have an exercise price of $13.30 and an expiry date of January 2019. The B warrants bear an exercise price of $

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