Oil Warrants

Macquarie Oil Warrants give your clients exposure to one of the most actively traded commodities in the global marketplace.  With the ease and relative low cost of a warrant trade, investors can experience the exciting and fast moving markets of Oil.

As with all MBL warrants, Oil warrants are traded through your stockbroker in exactly the same manner as shares and offer unlimited upside potential if the underlying moves in your favour.  Should markets move against you, however, the maximum loss is strictly limited to the initial amount invested, giving you 100% clarity as to your potential maximum loss.

Macquarie Oil Warrants offers your clients:

• Easy access to oil futures markets
• No minimum trading size
• No physical delivery required
• Warrants priced in Australian Dollars
• Liquidity provided by Market Making
• Easily traded and listed on the Australian Stock Exchange
• No Margin Calls

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How do they work?

Crude oil is the world’s most actively traded commodity, and Macquarie Oil Warrants allow investors to trade their view on the future price of oil via warrants linked to a NYMEX futures contract.

Macquarie Oil Warrants provide exposure to movements in the price of a particular Light, Sweet Crude Oil futures contract.  The price of Macquarie Oil Warrants is calculated based on the Oil Futures Contract and the current Australian/US Dollar foreign exchange rate.

By purchasing call warrants you receive upside or “long” exposure to the price of a oil futures contract which allows you to receive a cash settlement amount, in Australian dollars, where the Settlement Level of the Oil Futures Contract is greater than the Exercise Level at maturity.

By purchasing put warrants you receive downside or “short” exposure to the price of a oil futures contract which allows you to receive a cash settlement amount, in Australian dollars, where the Settlement Level of the Oil Futures Contract is less than the Exercise Level at Maturity.

Over the life of the warrant, the price will rise and fall based on two specific underlyings.

1. The price fluctuations of a specific oil futures contract in US dollars.
2. The change in value between the Australian dollar and the US dollar.

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Who Do They Suit?

Macquarie Oil Warrants may be suitable if you:

• are looking to spend less up front and get greater exposure to movements in the value of Oil and the Oil Futures Contract;
• are looking for an alternative to other forms of gearing into oil commodities; and
• are experienced in dealing and/or trading in derivatives, options, futures contracts or warrant products

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Historical performance of NYMEX Crude Oil Futures

The historical performance below is intended only as an illustration of the volatility of the NYMEX Oil Futures Contract for a period of approximately 2 years to 29 July 2005.  Please note the closing prices are for the futures contract for the closest expiring month and does not reflect the contract with expiring months in the futures.

Investors should be aware that historical returns are not reliable indicators of future returns and that contracts with expiry dates in the future may be different from contracts for the closest delivery month.

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Current Oil Warrants Issued By Macquarie

Where we provide any advice on this webpage, it has been prepared by Macquarie Bank Limited ABN 46 008 583 542 (Macquarie) without considering your objectives, financial situation or needs. Before acting on any advice on this webpage, you should consider its appropriateness to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this webpage.

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