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.

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