In Which of the Following Ways Do Warrants Differ from Call

question 5

Multiple Choice

In which of the following ways do warrants differ from call options?
I.Warrants impact the firm while call options do not.
II.Call options generally have shorter maturities than warrants.
III.Any profit received from call options is taxable while that from warrants is not taxable.
IV.Volatility increases the value of call options but makes warrants less valuable.
V.The longer maturities of warrants make them less valuable.

• A)I, II, and III
• B)I, III, and V
• C)II, IV, and V
• D)I and II