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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Definitions:

Asymmetric Carbon

A carbon atom bonded to four different atoms or groups, making it a center of chirality and pivotal in the study of stereochemistry.

R or S

Designations used in stereochemistry to describe the absolute configuration of chiral molecules relative to their spatial arrangement.

Stereochemical Detail

Information regarding the spatial arrangement of atoms within a molecule, including the configuration of atoms, groups, or bonds.

(S)-1-bromo-1-chloropropane

An organic compound characterized as a bromochloropropane with specific (S) chiral configuration.