Two Major Differences Between a Warrant and a Call Option

question 85

Multiple Choice

Two major differences between a warrant and a call option are
I.warrants are contracts outside of the firm while options are within the firm;
II.warrants have long maturities while options are usually short maturities;
III.warrant exercise dilutes the value of equity while options exercise usually does not

• A)II and III only
• B)I only
• C)II only
• D)III only

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