Two Major Differences Between a Warrant and a Call Option

question 95

Multiple Choice

Two major differences between a warrant and a call option are:
I. Warrant 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 option exercise does not.

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

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Definitions:

Stress

A physical and emotional response to perceived threats or challenges, resulting in a state of strain or tension.

Emmy Werner

A psychologist known for her work on resilience in children, particularly those who face significant adversities but manage to thrive.

Psychological Strength

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Children who are able to withstand and recover quickly from difficult conditions or situations.