Which of the Following Would Not Describe the Difference Between

question 1

Multiple Choice

Which of the following would not describe the difference between warrants and call options?

• A)Warrants are issued by firms whereas call options are issued by individuals.
• B)Call options have an exercise price whereas warrants do not.
• C)Exercising of warrants creates dilution whereas exercising all options does not.
• D)When call options are exercised existing shares trade hands whereas if warrants are
• Exercised new equity must be issued.
• E)None of the above.

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Definitions:

Units Sold

The number of individual items or products that have been sold over a specific period.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to price or other factors.

Tax Burden

Refers to the economic impact of taxes on an individual, corporation, or market, often measured as a percentage of income or GDP.

Price Elastic

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.