Warrants Are Similar to Options,in That the Value of the Warrant

question 21

Multiple Choice

Warrants are similar to options,in that the value of the warrant is limited by:

• A) expiring worthless if the stock price is below the total warrant exercise price.
• B) the trading capabilities of the exchange used.
• C) the price of the underlying stock divided by the number of warrants needed to purchase a share.
• D) Both expiring worthless if the stock price is below the total warrant exercise price; and the price of the underlying stock divided by the number of warrants needed to purchase a share.
• E) Both the trading capabilities of the exchange used; and the price of the underlying stock divided by the number of warrants needed to purchase a sharE.

---

Definitions:

Duty of Care

A legal obligation which requires adherence to a standard of reasonable care while performing acts that could foreseeably harm others.

Trespasser

A person who intentionally and without consent or privilege enters another’s property.

Partially At Fault

A situation where more than one party shares responsibility for a wrongful action or incident.

Occupier's Rights

Rights that grant an individual or entity the authority to use and control a property, without necessarily owning it.