The shares closed on Friday at $13.375, with the underlying stocks recently worth closer to $14.

Each option contract represented 100 shares of an underlying stock, and matured in 30 days.

However, there is concern that it would also artificially restrict the price of the underlying stocks.

And the fund's big discount would narrow or even disappear, providing a better return than the underlying stocks themselves.

But with a discount already in place, they are likely to fall a little slower than the underlying stocks, providing a cushion.

Warrants, whose value is derived from their relationship to an underlying common stock, are widely considered a speculative investment.

If the underlying stocks did well, then no one would be the wiser.

Buyers suffer, but sellers gain, as the price of the underlying stock moves up.

A derivative is something that is related to an underlying stock or share.

For example, new information may become available that permanently affects the long-term valuation of an underlying stock.