Deep in the money (deep ITM) and far out of the money (far OTM) warrants

If we take into account the extent of difference between the strike price and the underlying price, warrants can be further classified into:

ITM
deep ITM
OTM and
far OTM.

Generally, where there is a 15% or above difference between the strike price and the underlying price, a warrant will be considered far OTM or deep ITM.

However, this 15% mark is merely a rough idea, not an absolute threshold.

One must also look in the volatitlity of the underlying.

Some warrants may be considered deep ITM or far OTM even if the difference between strike price and the underlying price is only 10% or more.