Concerning Warrants and Call Options,which One of the Following Statements

question 49

Multiple Choice

Concerning warrants and call options,which one of the following statements generally is correct?

• A)The issue procedures for both are quite similar.
• B)When a call option is exercised,the firm must issue new stock.
• C)When a warrant is exercised,existing stock changes hands.
• D)Exercise of a call option does not affect share value but warrant exercise does.
• E)The issuance of a call option generally decreases share value.

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Definitions:

Java

A popular, object-oriented programming language designed to have as few implementation dependencies as possible, allowing applications to be run on any device that supports Java without the need for recompilation.