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:

Quick Ratio

A liquidity metric that measures a company's ability to cover its short-term obligations with its most liquid assets excluding inventory.

Contingent Liability

A potential financial obligation that depends on a future event occurring or not occurring.

Reasonably Possible

A term used to describe the likelihood of an event occurring that is more than remote but less than probable, often used in financial reporting.

Not Estimable

A term indicating that something cannot have its value, size, or amount accurately determined or calculated.