Concerning Warrants and Call Options, Which of the Following Statements

question 13

Multiple Choice

Concerning warrants and call options, which 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)None of the above is correct.

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