I have another question regarding the implied volatilities of warrants: When it's said they are overpriced compared to classical options, that means their implied volatility is higher than for similar options with same strike and maturity, right? Does anyone have an idea or source of how big the difference in volatilities is? And why don't other banks exploit too expensive warrants by buying them from their peers and hedge the position at the EUREX?
Can warrant IVs still be used for the duplication method of analyzing price differences of structured products (certificates)?
Thanks, I really appreciate any answers!