Warrants Differ from Listed Options in That

question 47

Multiple Choice

Warrants differ from listed options in that:
I. Exercise of warrants results in dilution of a firm's earnings per share.
II. When warrants are exercised, new shares of stock must be created.
III. Warrant exercise results in cash flows to the firm, whereas exercise of listed options does not.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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Definitions:

Skill and Luck

Components influencing success in various tasks, where skill is the ability to perform tasks well through experience and training, and luck refers to success determined by chance.

Social-Cognitive Theories

A framework for understanding, predicting, and changing human behavior that emphasizes the interaction of cognitive, behavioral, and environmental factors.

Psychoanalytic Theories

Theories developed by Sigmund Freud and his successors, focusing on the influence of the unconscious mind on behavior.

Humanistic Theories

A perspective in psychology that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.