Which of the Following Would Not Describe the Difference Between

question 39

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 stock must be issued.

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