Two Major Differences Between a Warrant and a Call Option

question 21

Multiple Choice

Two major differences between a warrant and a call option are that

• A)warrants have long maturities while options are usually short maturities, and warrant exercise dilutes the value of equity while options exercise usually does not.
• B)warrants are contracts outside of the firm while options are within the firm.
• C)warrants have long maturities while options are usually short maturities.
• D)warrant exercise dilutes the value of equity while options exercise usually does not.